Talk by Dr. Giuseppe Sorrenti

Giuseppe Sorrenti

January 26, 2018, 11:00 h

Andreasstrasse 15, 4th floor
AND 4.19, 8050 Zürich

MONEY VS. TIME

FAMILY INCOME, MATERNAL LABOR SUPPLY, AND CHILD
DEVELOPMENT

 

Dr. Sorrenti studies the effect of family income and maternal hours
worked on child development. His instrumental variable analysis
suggests different results for cognitive and behavioral development. An
additional $1,000 in family income improves cognitive development by
4.4 percent of a standard deviation but has no effect on behavioral
development. A yearly increase of 100 work hours negatively affects both
outcomes by approximately 6 percent of a standard deviation. The quality
of parental investment matters and the substitution effect (less parental
time) dominates the income effect (higher earnings) when the after-tax
hourly wage is below $13,50. Results call for consideration of child care
and minimum wage policies that foster both maternal employment and
child development.

Flyer (PDF, 66 KB)