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The Impact of Child Care Cost on the Labour Supply of Married Mothers: Evidence from Canada

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  • Lisa M. Powell
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    Abstract

    This paper provides estimates for Canada of the impact of childcare costs on the labor supply of married mothers. This is done by linking two microdata sources: the 1988 Canadian National Child Care Survey and the 1988 Labour Market Activity Survey. The key results show that the market wage and childcare costs have, respectively, a significant positive and negative impact on both hours of work and the labor-force-participation decision by married mothers. The childcare cost elasticities for labor force participation and hours of work are reported to be -0.38 and -0.32, respectively.

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    File URL: http://links.jstor.org/sici?sici=0008-4085%28199708%2930%3A3%3C577%3ATIOCCC%3E2.0.CO%3B2-G
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    Bibliographic Info

    Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

    Volume (Year): 30 (1997)
    Issue (Month): 3 (August)
    Pages: 577-94

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    Handle: RePEc:cje:issued:v:30:y:1997:i:3:p:577-94

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    Cited by:
    1. Pierre Lefebvre & Philip Merrigan, 2000. "The Effect of Childcare and Early Education Arrangements on Developmental Outcomes of Young Children," Cahiers de recherche CREFE / CREFE Working Papers 119, CREFE, Université du Québec à Montréal.
    2. Katharina Wrohlich, 2004. "Child Care Costs and Mothers¿ Labor Supply: An Empirical Analysis for Germany," Discussion Papers of DIW Berlin 412, DIW Berlin, German Institute for Economic Research.
    3. Pierre Lefebvre & Philip Merrigan, 2005. "Low-fee ($5/day/child) Regulated Childcare Policy and the Labor Supply of Mothers with Young Children: A Natural Experiment from Canada / La politique des services de garde à 5 $/jour et l’offre de," CIRANO Working Papers 2005s-08, CIRANO.
    4. Pierre Lefebvre & Philip Merrigan, 2005. "The Québec’s Experiment of $5 per Day per Child Childcare Policy and Mother’s Labour Supply: Evidence Based on the Five Cycles of the NLSCY," CIRANO Project Reports 2005rp-21, CIRANO.
    5. Jérôme De Henau & Danièle Meulders & Sile Padraigin O'Dorchai, 2006. "The comparative effectiveness of public policies to fight motherhood-induced employment penalties and decreasing fertility in the former eu-15," DULBEA Working Papers 06-02rs, ULB -- Universite Libre de Bruxelles.
    6. Barrow, Lisa, 1999. "An Analysis of Women's Return-to-Work Decisions following First Birth," Economic Inquiry, Western Economic Association International, vol. 37(3), pages 432-51, July.
    7. Lisa Barrow, 1999. "Child care costs and the return-to-work decisions of new mothers," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q IV, pages 42-55.
    8. Rachel Connelley & Jean Kimmel, 1999. "Marital Status and Full-time/Part-time Work Status in Child Care Choices: Changing the Rules of the Game," Upjohn Working Papers and Journal Articles 99-58, W.E. Upjohn Institute for Employment Research.
    9. Kohen, Dafna Forer, Barry Hertzman, Clyde, 2006. "National Data Sets: Sources of Information for Canadian Child Care Data," Analytical Studies Branch Research Paper Series 2006284e, Statistics Canada, Analytical Studies Branch.

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