September 2023

After the birth of their first child, different sex couples often opt for a gendered labor division, with mothers assuming more of the primary responsibility for childcare, which often leads to a reduction in their salaried working hours, while fathers continue full-time employment. In my research, I analyzed the role financial aspects play when new parents negotiate their labor division. What role do childcare costs play when parents decide whether to work outside the home or take care of their children by themselves? Are mothers more likely to reduce their paid working hours and take on more unpaid work than fathers, because, on average, they earn less?

To answer these questions, I traced the financial decisions of 54 parents (27 couples) living in Switzerland. While most of the couples belonged to the middle-class, their income configurations varied: before childbirth, the man earned more than the woman did in 12 couples.  In 9 couples, both parents earned the same.  In 6 couples, the woman earned more than the man did. Each parent was interviewed once before and once or twice in the first two years after the birth of their first child. This longitudinal data with more than 130 in-depth interviews provided a detailed picture of how the couples navigated their financial decisions.

Why did Unilever enter the market for plant-based alternatives to meat? Why was BP engaged in solar panel manufacturing? And why did Patagonia enter the organic food market?

Usually market entry decisions are ascribed to superior resources or capabilities: companies enter markets where they can leverage their knowledge, technology, or expertise to gain an advantage. But of the three instances mentioned above, only one is largely consistent with this story. What accounts for market entry decisions when companies do not have the requisite resources and capabilities?

A first step to solving this puzzle is to acknowledge that the markets these companies have entered—markets for organic food, solar energy, and plant-based meat alternatives—are all instances of so-called “moral markets”: sectors that emerge not just to create economic value, but to explicitly offer market-based solutions to social and environmental problems.