Family Policies and Women in the Labour Market: Evidence from Southern Europe

Abstract: Previous research has analysed the relationship between women’s labour market outcomes and family policies in the general context of the European Union or among OECD countries. The current dissertation investigates the effect of a set of family policy’s instruments on women’s labour market participation and maternal employment in the countries of Southern Europe – Greece, Italy, Spain and Portugal – over the period 20012014. Based on previous literature, the main policy instruments selected in the analysis are related to family taxation, parental leave scheme and state’s support to families with children. Through the implementation of a fixed-effect linear panel regression model, the analysis shows that family policies did not significantly affect labour force participation while they have a more considerable impact on maternal employment. This claims for the persistence of strong gender stereotypes in the designation of public policies, with the state mostly treating women in their role of mothers instead of workers. Additionally, the analysis argues for the existence of a positive selection among working women and mothers. This calls for the need to remove entry barriers to the labour markets for the excluded women.