Relative income within households and labour supply: Evidence from a teacher salary increase

Previous research indicates that the relative income between spouses matters for the division of labour within the household. This project aims at contributing to this literature by taking advantage of a promotion reform in the Swedish labour market for teachers. The reform introduced a substantial wage increase for promoted teachers corresponding to nearly 20 percent of mean pre-reform wages. We will investigate the effect of these promotions on the allocation of time to care for children between spouses. The project uses data from IFAU-U.