Family allowances increase earnings inequality between households

Motherhood-employment gap

The doctoral thesis reveals that financial support policies for families with children, like family allowance, lead to a lower participation of mothers in employment. This increases the difference between mothers and women without children. In this respect, Nieuwenhuis speaks of a larger motherhood-employment gap. It appeared that tax advantages for families with children have no effect on the participation of women in employment.

At the same time Nieuwenhuis saw how reconciliation policies (maternity and childcare leave, continued payment of salaries during leave) leads to mothers who are more active on the employment market. In other words: a smaller motherhood-employment gap. Nieuwenhuis does, however, place one marginal comment. Nieuwenhuis: "In countries with very long periods of childcare leave, the risk increases that mothers end up not being employment"

Income inequalities

A government that encourages the participation of women in employment affects not only the income of those particular women. Nieuwenhuis: "In countries with high rates of women's employment, the earnings inequality between coupled households is smaller compared to countries with low female labour force participation rates." This also implies that low rates participation of women on the labour market are associated with higher levels of earnings inequality between coupled households.

Well-educated mothers

Nieuwenhuis also studied the effect of level of education on the participation of women in employment. Although women who have enjoyed a higher education are more likely to work, the motherhood-employment gap among them is larger than among women who are less well-educated. However, government policy that focuses on combining work with having a family was found to be more effective with well-educated mothers. They are relatively more likely to work than mothers who are less well-educated.