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The availability of child care centers, perceived search costs and parental life satisfaction

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  • Chikako Yamauchi

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Abstract

The supply of formal childcare has expanded in many developed countries. There is ambiguity, however, in the theory that the entry of care providers increases consumers’ surplus and the welfare of households in a market with differentiated services, such as childcare. This study empirically investigates how perceived search costs and parental life satisfaction change when actual childcare availability is altered. It exploits the new panel data from Australia on the number of center-based childcare places per 100 children within a household’s residential area. The results show that an increase in the availability of centerbased childcare is associated with a decrease in perceived difficulty in finding ‘good quality’ childcare, as well as an improvement in mothers’ satisfaction with the increased availability of free time. These findings imply that the local availability of center-based childcare has enhanced the subjective well-being of parents.

(This abstract was borrowed from another version of this item.)

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File URL: http://hdl.handle.net/10.1007/s11150-009-9071-8
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Bibliographic Info

Article provided by Springer in its journal Review of Economics of the Household.

Volume (Year): 8 (2010)
Issue (Month): 2 (June)
Pages: 231-253

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Handle: RePEc:kap:reveho:v:8:y:2010:i:2:p:231-253

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Web page: http://www.springerlink.com/link.asp?id=109451

Related research

Keywords: Child care; Entry; Search; Consumers’ surplus; Life satisfaction; J13; J22;

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Cited by:
  1. Pia S. Schober & Christian Schmitt, 2013. "Day-Care Expansion and Parental Subjective Well-Being: Evidence from Germany," SOEPpapers on Multidisciplinary Panel Data Research 602, DIW Berlin, The German Socio-Economic Panel (SOEP).

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