Outsourcing Household Production: Foreign Domestic Workers and Native Labor Supply in Hong Kong

A-Tier
Journal: Journal of Labor Economics
Year: 2013
Volume: 31
Issue: 2
Pages: 327 - 371

Authors (2)

Patricia Cortés (not in RePEc) Jessica Pan (National University of Singapo...)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We explore how the availability of affordable live-in help provided by foreign domestic workers (FDWs) in Hong Kong affected native women's labor supply and welfare. First, we exploit differences in the FDW program between Hong Kong and Taiwan. Second, we use cross-sectional variation in the cost of a FDW to estimate a model of labor force participation and FDW hire. FDWs increased the participation of mothers with a young child (relative to older children) by 10-14 percentage points and have generated a monthly consumer surplus of US$130-US$200. By reducing child care costs through immigration, this is a market-based alternative to child care subsidies.

Technical Details

RePEc Handle
repec:ucp:jlabec:doi:10.1086/668675
Journal Field
Labor
Author Count
2
Added to Database
2026-01-25