Child-Care Costs and Family Labor Supply

Abstract

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Enticing even higher female labor supply: the impact of cheaper day care

“…Despite the large number of studies, considerable uncertainty lingers about the magnitude of the maternal employment effect with respect to the price of child care (Blau 2003). Blau & Robins (1988) estimate childcare price elasticities for married women of -0.38 with respect to labor market participation. Ribar (1992) found some larger price elasticities for labor market participation, also for married women.…”

Do downward private transfers enhance maternal labor supply? Evidence from around Europe

“…The large body of research addressing the choice of childcare and work among mothers typically concentrates on the labor market implications of government induced monetary incentives (see for instance Gronau, 1973, Heckman, 1974, Blau and Robins, 1988. At the same time, the literature studying the impact of downward intergenerational transfers on the labor supply of young individuals has focused predominantly on consequences of downward monetary gifts such as human capital investment or work disincentives (Becker and Tomes, 1976, Ehrenberg and Sherman, 1987, Wolff, 2006.…”

The Effect of All-Day Primary School Programs on Maternal Labor Supply

“…As both the costs and the quality of care are important determinants of the demand for childcare (e.g. Blau & Robins 1988, Blau & Hagy 1998, an increase in the number or amount of IZBB investments allocated to primary schools should positively affect the probability of mothers to make use of AD primary school programs. The magnitude of effects, however, depends on the overall availability of AD primary schools.…”

“…Poor childcare quality or high social costs of using childcare (e.g. loss in social esteem, "Rabenmutter") may, however, suppress maternal use of childcare (Blau & Robins 1988, Ribar 1992. Moreover, a high initial level of childcare supply and/or maternal employment can limit the scope of such programs (Cascio et al 2015).…”