The Impact of Female Labour Force Participation on Household Income Inequality in Switzerland

This paper investigates whether an increase in female labour force participation comes at the price of higher household income inequality. Using data from the Household Panel, we decompose household income, distinguishing between part-time and full-time work. We find that female labour force participation has slightly attenuated household income inequality in Switzerland. Women’s entry into the labour market, increasing work-percentages and the very weak correlation in partner’s earnings mainly contributed to this effect. Full-time work, however, will not reduce inequality further in the future.