The Family Peer Effect on Mothers' Labor Supply

Abstract

The historical rise in female labor force participation has flattened in recent decades, but the proportion of mothers working full time has increased. We provide the first empirical evidence that the increase in mothers' working hours is amplified through the influence of family peers. For identification, we exploit partially overlapping peer groups. Using Norwegian administrative data, we find positive and statistically significant family peer effects, but only on the intensive margin of women's labor supply. These are in part driven by concerns about time allocation from early childhood and concerns about earnings from age five. (JEL J12, J16, J24, J31)