difference-in-difference倍差法课件`.pdf

Outsourcing Household Production: Foreign Domestic Helpers and Native Labor Supply in Hong Kong Patricia Cortes Jessica Pan University of Chicago Booth School of Business July 2009 Abstract Migration of women as domestic workers from developing to developed countries is a new and growing phenomenon. In Hong Kong, foreign domestic workers (FDWs) account for 6 percent of the labor force and among households with young children, more than one in three hires at least one. This paper investigates the e§ects of the availability of foreign domestic workers on Hong Kong womenís decisions regarding labor supply. We present cross-country time-series evidence comparing Hong Kong and Taiwan that shows that the foreign worker program in Hong Kong increased labor force participation rates by 10 percentage points among mothers of young children relative to mothers of older children. Using micro-level data, we Önd that hiring a FDW changes the labor force participation decision primarily for women with a low or medium education level. The program changed little the labor supply of highly educated mothers, though it ináuenced substantially their choice of childcare. When the micro-level e§ects are aggregated, smaller treatment e§ects are o§set by a much larger share of women hiring FDWs, and the largest e§ect of the program is found for the medium skilled, followed closely by the highly skilled. We are grateful to David Autor, Marianne Bertrand, Kevin Lang, Divya Ma