Child Care Prices and Maternal Employment: A Meta‐analysis

Abstract

Abstract. The literature estimates for labor force participation elasticity with regard to child care prices are extensive and varying. While some estimates imply substantial gains from child care subsidies, others find insignificant effects. To determine the causes of the variance, this paper reviews and analyzes the elasticity sizes using estimates from 36 peer-reviewed articles and working papers in the literature. We start by reviewing the theoretical and empirical aspects related to participation elasticity with regard to child care costs, paying special attention to sample characteristics, methodological aspects, and macro level factors. We conclude by providing a metaregression using control variables based on our review of the literature to explain some of the differences between the estimates. As research builds on and improves the methods and assumptions in prior works, elasticity estimates have become smaller over time. This decline might also be partially explained by changes in labor market characteristics. In countries with high rates of part-time work and very high or very low rates of female labor force participation, we find elasticity rates to be smaller.

The Long-Term Costs of Family Trajectories: Women’s Later-Life Employment and Earnings Across Europe

“…Second, societies differ in the extent to which care for children is defamilialized: that is, regarded as a public responsibility and provided by formal (i.e., paid or taxed) care services (Bettio and Plantenga 2004;Esping-Andersen 1999;Saraceno and Keck 2010;Tijdens 1993). The availability of such formal services is generally viewed as a precondition for women's capacity to participate in the labor market (i.e., commodify themselves) and have a continuous career regardless of their family choices (Akgunduz and Plantenga 2018;Orloff 1993). In addition, the affordability of care services is critical.…”

A multilevel perspective of the identity transition to motherhood

“…One of the reasons why this percentage is so high is because 50 per cent of the working population works part‐time, against a European average of less than 20 per cent (Eurostat, ). The laws and collective agreements in the Netherlands enable part‐time work and take into account childcare responsibilities (Akgunduz & Plantenga, ). These collective agreements vary across sectors.…”

Are children an incentive or a disincentive for migration? Evidence from Vietnam

“…Because of the need for childcare, parents might be less likely to migrate. A large number of studies find that mothers are more likely to participate in labour markets when their children attend preschool child (see reviews in Akgunduz &Plantenga, 2018, andBlau &Currie, 2006;. Nguyen (2016), meanwhile, shows that although parental migration can increase household income, it reduces health and cognitive ability scores of children in Vietnam.…”

“…In summary, the direction of the effect of number of children on migration for either the whole family or individual parents is ambiguous. Although there are many empirical studies on the trade-off between quantity and quality of children (see the review from Mont, Nguyen, & Tran, 2019), for example and the effect of children on parental employment (see reviews from Akgunduz & Plantenga, 2018), and Blau & Currie, 2006 , there is little empirical evidence on the effect of children on migration. Moreover, the limited empirical evidence that exists offers only mixed conclusions.…”