Family policy and wives’ economic independence

This study examines the effect of employment-supportive policies on the economic contribution of wives to family income. The effect is evaluated after disentangling labor market attainment from participation, and after distinguishing between advantaged and disadvantaged women. Based on the microdata for 21 countries, the findings show that the effect of employment-supportive policies on wives’ economic contribution is conditioned by education and skill levels. All indicators of family policy were found to increase the economic contribution of low-educated wives, above and beyond the effect on labor market participation. However, while family policy helps low-educated women join the labor market and increases their economic rewards within it, it was not found to affect the economic contribution of high-educated wives. These results are not in line with previous studies. The findings are discussed in light of homogamy theory, the tendency of men and women to marry partners who resemble them culturally and socioeconomically.