Dimensions of Family Policy and Female Labor Market Participation: Analyzing Group‐Specific Policy Effects

This article investigates whether and how family policy influences the probability and intensity of mothers' labor market participation. Unlike previous studies, this contribution focuses on group‐specific policy effects, thereby accounting for the fact that, theoretically, women with different resources and preferences should respond differently to given policy measures. The analyses show that varying individual characteristics indeed influence the impact family policy measures have on women's individual behavior. First and foremost, family policies most strongly influence mothers with medium levels of education, for whom labor market participation tends to be “optional.” Moreover, high direct and indirect cash benefits to families, which primarily stem from traditional conservative family policy, reduce the probability of employment for women with low to medium levels of education.