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Child-care costs and mothers’ employment rates: an empirical analysis for Austria

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  • Helmut Mahringer
  • Christine Zulehner

Abstract

The availability of affordable formal child care is an important determinant of the labour force participation of parents, particularly of mothers, which is increasingly discussed. This paper examines the impact of child-care costs on the employment rates of mothers with children younger than 12 years. Using data from the 1995 and 2002 Austrian Microcensus, combined with administrative wage data from Austrian tax records, we estimate the impact of net wages and child-care costs on mothers’ employment probabilities. In line with theoretical considerations and most of the empirical literature, we find a negative elasticity of mothers’ employment rates to child-care costs as well as positive elasticity with regard to net wages. The point estimates for the impact of net wages and child-care costs are of similar absolute size. Additionally, the empirical results indicate that higher family income reduces the employment probability of mothers. Copyright Springer Science+Business Media New York 2015

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  • Helmut Mahringer & Christine Zulehner, 2015. "Child-care costs and mothers’ employment rates: an empirical analysis for Austria," Review of Economics of the Household, Springer, vol. 13(4), pages 837-870, December.
    • Handle: RePEc:kap:reveho:v:13:y:2015:i:4:p:837-870
    DOI: 10.1007/s11150-013-9222-9
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    2. Christoph Zangger & Janine Widmer & Sandra Gilgen, 2021. "Work, Childcare, or Both? Experimental Evidence on the Efficacy of Childcare Subsidies in Raising Parental Labor Supply," Journal of Family and Economic Issues, Springer, vol. 42(3), pages 449-472, September.
    3. Helmut Mahringer & Christine Zulehner, 2015. "Child-care costs and mothers’ employment rates: an empirical analysis for Austria," Review of Economics of the Household, Springer, vol. 13(4), pages 837-870, December.
    4. René Böheim & Marian Fink & Silvia Rocha-Akis & Christine Zulehner, 2017. "Die Entwicklung geschlechtsspezifischer Lohnunterschiede in Österreich," WIFO Monatsberichte (monthly reports), WIFO, vol. 90(9), pages 713-725, September.
    5. Julia Bachtrögler & Julia Bock-Schappelwein & Paul Eckerstorfer & Peter Huber & Christine Mayrhuber & Mark Sommer & Gerhard Streicher, 2019. "Wachstumsfaktor Gleichstellung. Der ökonomische Nutzen von Gender Budgeting in Wien," WIFO Studies, WIFO, number 65741, Juni.
    6. Peter Huber & Martin Spielauer, 2020. "Return and Onward Migration and Labour Market Entry. Empirical Analysis and Microsimulation Projection for Austria," WIFO Working Papers 616, WIFO.
    7. Bruno Rodrigues & Vincent Vergnat, 2019. "The time and the transitions back to work in France after maternity," Review of Economics of the Household, Springer, vol. 17(3), pages 861-888, September.
    8. Margit Schratzenstaller & Fanny Dellinger, 2017. "Genderdifferenzierte Lenkungswirkungen des Abgabensystems," WIFO Studies, WIFO, number 60797, Juni.
    9. Margit Schratzenstaller & Fanny Dellinger, 2018. "Genderdifferenzierte Lenkungswirkungen des Abgabensystems auf das Arbeitsangebot," WIFO Monatsberichte (monthly reports), WIFO, vol. 91(2), pages 105-120, February.
    10. Peter Huber & Thomas Horvath & Klaus Nowotny & Margit Schratzenstaller & Silvia Rocha-Akis & Hedwig Lutz & Christine Mayrhuber, 2021. "Analysen zur rezenten Entwicklungen der Familie in Österreich. Beiträge des WIFO zum 6. Österreichischen Familienbericht 2009-2019," WIFO Studies, WIFO, number 67115, Juni.
    11. Taryn W. Morrissey, 2017. "Child care and parent labor force participation: a review of the research literature," Review of Economics of the Household, Springer, vol. 15(1), pages 1-24, March.
    12. Fanny Dellinger & Peter Huber, 2021. "The Impact of Welfare Benefits on the Location Choice of Refugees. Testing the Welfare Magnet Hypothesis," WIFO Working Papers 626, WIFO.
    13. N. N., 2017. "WIFO-Monatsberichte, Heft 9/2017," WIFO Monatsberichte (monthly reports), WIFO, vol. 90(9), September.

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    More about this item

    Keywords

    Child-care; Labour supply; Bivariate sample selection; Matched survey and administrative data; C25; J13; J22;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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