We set up a dynamic reduced form model of labour market participation for women who balance career and motherhood. The model accounts for the occurrence of future child birth and early retirement, and includes home production; however, it does not require the estimation of a structural
model. Careful implementation of pension institutions can return optimal life patterns of participation without the need of a structural approach. The weaker theoretical framework is compensated by the rich spectrum of possible policy simulations. As illustration, we simulate the effect of
two tax credits policy options on the hazard rate out of work.
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Document Type: Research Article
Department of Economics,VU University, Amsterdam, The Netherlands
CPB Netherlands Bureau for Economic Policy Analysis, Centraal Planbureau, van Stolkweg 14, PO Box 80510, 2508GMThe Hague, The Netherlands
Publication date: 2011-09-01
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