【Macro】On the Welfare Cost of Constrained Female Labor Supply

  • 研討會日期 : 2024-05-27
  • 時間 : 14:30
  • 主講人 : Professor Dongya Koh (高東也)
  • 地點 : Conference Room B110
  • 主持人 : Professor Tsung-Hsien Li
  • 演講者簡介 : Prof. Dongya Koh received his PhD from Washington University in St. Louis (USA) in 2014. He is currently an associate professor at Osaka University in Japan. His research interests are primarily in quantitative macroeconomics, income inequality, and consumption insurance.
  • 演講摘要 : Female labor plays a crucial role as a form of consumption insurance for a household facing income risks. However, utilizing this insurance option comes with its own set of costs and constraints. This study delves into how these constraints impact household welfare through two distinct channels: the insurance channel and the precautionary channel. We empirically and analytically show that these constraints not only hinder consumption smoothing but also intensify the household's precautionary behavior before the shock arrival. Furthermore, our quantitative analysis reveals that eliminating constraints on its extensive margin of female labor mitigates precautionary saving, leading to a whopping 14.6\% boost in welfare. On the other hand, relaxing constraints on the intensive margin of female labor allows for more flexible insurance options, leading to a modest 0.23\% increase in welfare. Just a side note: skipping the wedding bells? That’s a major buzzkill, causing a dismal 11.9\% drop in welfare.