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The present study investigates the persistent gender inequality in labor market outcomes, with a particular focus on the role of parents’ labor supply decisions around child birth. We examine the role of gender role attitudes and tax-based economic incentives on these decisions, drawing on rich panel data from Germany and self-reported gender role attitudes. Our analysis shows that gender role attitudes are not associated with labor supply before birth, but they play a crucial role in the mother’s labor supply after the first child’s birth. We will utilize a dynamic structural model of labor supply decisions of households to disentangle the role of gender role attitudes and tax-based economic incentives. Our model incorporates heterogeneity in childcare allocation preferences and will allow us to simulate the short-term and long-term impact of various policy interventions.
