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Moreover, the participation rate of married women is positively correlated with their husbands\u2019 income. We show that these two features can be partly explained by the tax system: a high tax rate together with tax credits and transfers raise the burden of two-earner households, generating disincentives to work. We estimate two structural models of labor supply: one where the husband\u2019s labor supply is inelastic and one with joint couple decisions. Then we use the estimated parameters to simulate the effects of alternative revenue-neutral tax systems on labor supply. We find that working tax credit and gender-based taxation boost it, with the effects of the former being concentrated on low educated women. 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Using the National Longitudinal Survey of Youth 1979 (NLSY79), we investigate whether the availability of this source of childcare has a causal effect on mother\u2019s labor force participation. We compare Ordinary Least Squares 0(OLS), women\u2019s Fixed Effects (FE) and Instrumental Variables (IV) estimates. We find that OLS estimates overestimate the effect of grandparental childcare on young mothers\u2019 labor force participation and are not significantly different from IV estimates. In our preferred specification, FE, we find that the availability of grandparental childcare significantly increases mothers\u2019 labor force participation by 9 percentage points and that this effect is largely driven by minority, single or never married mothers. Our findings suggest that policies that raise retirement ages might increase older cohorts\u2019 labor participation rates at the expense of young women\u2019s through childcare availability.<\/jats:p>\n                <jats:p>\n                  <jats:bold>JEL codes<\/jats:bold>\n               <\/jats:p>\n                <jats:p>J2; I3.<\/jats:p>","DOI":"10.1186\/2193-9004-2-14","type":"journal-article","created":{"date-parts":[[2013,10,11]],"date-time":"2013-10-11T16:00:58Z","timestamp":1381507258000},"update-policy":"https:\/\/doi.org\/10.1007\/springer_crossmark_policy","source":"Crossref","is-referenced-by-count":79,"title":["Grandparents\u2019 Childcare and Female Labor Force Participation"],"prefix":"10.2478","volume":"2","author":[{"given":"Josefina","family":"Posadas","sequence":"first","affiliation":[]},{"given":"Marian","family":"Vidal-Fernandez","sequence":"additional","affiliation":[]}],"member":"374","published-online":{"date-parts":[[2013,10,10]]},"reference":[{"key":"61_CR1","volume-title":"Grandparents and Women Participation in the Labor Market","author":"P Albuquerque","year":"2010","unstructured":"Albuquerque P, Passos J: Grandparents and Women Participation in the Labor Market. 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Economica 2013,80(318):219\u2013247.","journal-title":"Economica"},{"issue":"1","key":"61_CR10","doi-asserted-by":"publisher","first-page":"51","DOI":"10.1086\/648666","volume":"28","author":"MD Fitzpatrick","year":"2010","unstructured":"Fitzpatrick MD: Preschoolers Enrolled and Mothers at Work: The Effects of Universal Prekindergarten. Journal of Labor Economics 2010,28(1):51\u201385.","journal-title":"Journal of Labor Economics"},{"issue":"3","key":"61_CR11","doi-asserted-by":"publisher","first-page":"538","DOI":"10.1353\/jhr.2012.0026","volume":"47","author":"MD Fitzpatrick","year":"2012","unstructured":"Fitzpatrick MD: Revising Our Thinking About the Relationship Between Maternal Labor Supply and Preschool. 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This paper shows that small to medium-sized increases in uncertainty or risk aversion are enough to recommend an expansion of the safety net that would be broadly similar to the actual safety net expansions in the United States since 2007, which significantly depressed the labor market. Labor market effects of uncertainty through investment and insurance channels are also examined with employer and employee labor wedges measured from 2007 through 2013.<\/jats:p>","DOI":"10.1186\/2193-9004-3-8","type":"journal-article","created":{"date-parts":[[2014,4,22]],"date-time":"2014-04-22T17:07:51Z","timestamp":1398186471000},"update-policy":"https:\/\/doi.org\/10.1007\/springer_crossmark_policy","source":"Crossref","is-referenced-by-count":5,"title":["Uncertainty, redistribution, and the labor market since 2007"],"prefix":"10.2478","volume":"3","author":[{"given":"Casey B","family":"Mulligan","sequence":"first","affiliation":[]}],"member":"374","published-online":{"date-parts":[[2014,4,22]]},"reference":[{"key":"41_CR1","volume-title":"Measuring Economic Policy Uncertainty","author":"SR Baker","year":"2011","unstructured":"Baker SR, Bloom N, Davis SJ University of Chicago Booth School of Business. Measuring Economic Policy Uncertainty 2011. 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