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Women's labour force participation and child care in Romania

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  • Michael Lokshin
  • Monica Fong

Abstract

This paper models household demand for childcare and mothers' labour force participation in Romania. The model estimates the effects of the price of childcare, mothers' wages, and household characteristics on household behaviour with respect to childcare and maternal employment. We find that both the maternal decision to become employed and the decision to use out-of-home care are sensitive to the price of childcare. A decrease in the price of care can increase the number of working mothers and thus can reduce poverty in some households. We also find that the potential market wage of the mother has a significant positive effect on the decision to purchase market care and on the decision to engage in paid employment. The level of household non-wage income has little effect on maternal employment and on the demand for childcare.

Suggested Citation

  • Michael Lokshin & Monica Fong, 2006. "Women's labour force participation and child care in Romania," Journal of Development Studies, Taylor & Francis Journals, vol. 42(1), pages 90-109.
    • Handle: RePEc:taf:jdevst:v:42:y:2006:i:1:p:90-109
    DOI: 10.1080/00220380500356746
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    1. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119, Decembrie.
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    1. Cristina Borra, 2010. "Childcare cost and Spanish mother’s labour force participation," Hacienda Pública Española / Review of Public Economics, IEF, vol. 194(3), pages 9-40, October.
    2. Habibov, Nazim, 2012. "Early childhood care and education attendance in Central Asia," Children and Youth Services Review, Elsevier, vol. 34(4), pages 798-806.
    3. Hadi Esfahani & Roksana Bahramitash & Bin Lin, 2016. "Gender and Labour Allocation: the Role of Institutions and Policies in the Allocation of Female and Male Labor," Working Papers 998, Economic Research Forum, revised May 2016.
    4. Norberto Pignatti, 2020. "Encouraging women’s labor force participation in transition countries," IZA World of Labor, Institute of Labor Economics (IZA), pages 264-264, November.
    5. Yusuf Emre Akgunduz & Janneke Plantenga, 2018. "Child Care Prices And Maternal Employment: A Meta†Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 32(1), pages 118-133, February.
    6. Karao?lan, Deniz & Okten, Cagla, 2012. "Labor Force Participation of Married Women in Turkey: Is There an Added or a Discouraged Worker Effect?," IZA Discussion Papers 6616, Institute of Labor Economics (IZA).
    7. Y.E. Akgündüz & J. Plantenga, 2015. "Childcare Prices and Maternal Employment: a Meta-Analysis," Working Papers 15-14, Utrecht School of Economics.

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