Arbeitspapier

Maternal Employment and Happiness: The Effect of Non-Participation and Part-Time Employment on Mothers' Life Satisfaction

In contrast to unemployment, the effect of non-participation and parttime employment on subjective well-being has much less frequently been the subject of economists' investigations. In Germany, many women with dependent children are involuntarily out of the labor force or in part-time employment because of family constraints (e.g., due to lack of available and appropriate childcare). Using data from the German Socio-Economic Panel (SOEP) Study, this paper analyzes the impact of involuntary familyrelated non-participation and part-time employment on mothers' life satisfaction. Controlling for unobserved individual fixed effects, I find that both the pecuniary effects (foregone earnings) and the non-pecuniary effects (psychological costs) are significantly negative. Compensating income variations reveal that the residual household income would have to be raised by 182 percent (157 percent/77 percent) in order to just offset the negative effect of not being able to work because of family constraints (of being in short/long part-time employment). Moreover, in terms of overall happiness among mothers, non-participation is revealed to be a more serious problem than unemployment.

Language
Englisch

Bibliographic citation
Series: SOEPpapers on Multidisciplinary Panel Data Research ; No. 178

Classification
Wirtschaft
General Welfare; Well-Being
Labor Force and Employment, Size, and Structure
Time Allocation and Labor Supply
Subject
Subjective well-being
life satisfaction
labor force participation

Event
Geistige Schöpfung
(who)
Berger, Eva M.
Event
Veröffentlichung
(who)
Deutsches Institut für Wirtschaftsforschung (DIW)
(where)
Berlin
(when)
2009

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Berger, Eva M.
  • Deutsches Institut für Wirtschaftsforschung (DIW)

Time of origin

  • 2009

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