Female Labor Supply and Intergenerational Spillovers: Evidence from a Tax Reform
Female labor supply has increased substantially over the past century. Consequently, more women and men have observed their mother employed which may affect their own labor supply. In this paper, I exploit a tax reform which stimulated labor supply among women with low labor force attachment. Mothers directly affected by the reform increased their labor supply. However, daughters of these women reduce their labor supply and are more likely to have kids and be married. I do not find any effects on the labor supply or fertility of sons. Hence, my results show that a reform which stimulated maternal labor supply can have unintended negative effects on the labor supply of their daughters.