Family Restrictions at Work


This paper analizes the discrimination that individuals face at work due to their commitment to unpaid care work. The formal model presents a parametrization of the discrimination that affects the individual’s optimal labor market participation. The welfare of individuals with commitment to family duties is reduced for two different reasons: for not being able to participate as much in the labor market and thus receive a lower labor income, and for not being able to contribute as much to their family commitments. We compare the results for the female and male sections of the society and we illustrate the observed gender gaps in terms of labor market participation, income levels, and overall utility obtained. We find that even though the gender wage gap may be alleviated with reductions of the cost associated to unpaid care work, the gender utility gap will persist.