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Family Expenditures on Child Care

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Author Info

  • Rosenbaum Dan T

    ()
    (University of North Carolina, Greensboro)

  • Ruhm Christopher J

    ()
    (University of North Carolina, Greensboro)

Abstract

This study examines the child care "expenditure share," defined as child care expenses divided by after-tax income. We estimate that the average child under six years of age lives in a family that spends 4.9 percent of after-tax income on child care. However, this conceals wide variation: 63 percent of such children reside in families with no child care expenses and 10 percent are in families where the expenditure share exceeds 16 percent. The proportion of income devoted to child care is typically greater in single-parent than married-couple families but is not systematically related to a constructed measure of socioeconomic status. One reason for this is that disadvantaged families use lower cost modes and pay less per hour for given types of care. The expenditure share would be much less equal without low cost (presumably subsidized) formal care focused on needy families, as well as government tax and transfer policies that redistribute income towards them.

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File URL: http://www.degruyter.com/view/j/bejeap.2007.7.1/bejeap.2007.7.1.1682/bejeap.2007.7.1.1682.xml?format=INT
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Bibliographic Info

Article provided by De Gruyter in its journal The B.E. Journal of Economic Analysis & Policy.

Volume (Year): 7 (2007)
Issue (Month): 1 (July)
Pages: 1-32

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Handle: RePEc:bpj:bejeap:v:7:y:2007:i:1:n:34

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Cited by:
  1. Han, Wen-Jui & Ruhm, Christopher J. & Waldfogel, Jane & Washbrook, Elizabeth, 2009. "Public Policies and Women's Employment after Childbearing," IZA Discussion Papers 3937, Institute for the Study of Labor (IZA).
  2. Hori, Masahiro, 2011. "The expenditure on children in Japan," CIS Discussion paper series 527, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.

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