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Availability and Price of High Quality Day Care and Female Employment

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Author Info
Marianne Simonsen () (Department of Economics, University of Aarhus, Denmark)

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Abstract

In this paper I analyse to what degree availability and price of high quality publicly subsidised child care affects female employment for women living in couples following maternity leave. The results show that unrestricted access to day care has a significantly positive effect on female employment. The price effect is significantly negative: An increase in the price of child care of C=1 will decrease the female employment with 0.08% corresponding to a price elasticity of -0.17. This effect prevails during the first 12 months after childbirth.

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Publisher Info
Paper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number 2005-8.

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Length: 21
Date of creation: 24 May 2005
Date of revision:
Handle: RePEc:aah:aarhec:2005-8

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Web page: http://www.econ.au.dk/afn/

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Related research
Keywords: Child care; prices; waiting lists; regional variation; female employment;

Find related papers by JEL classification:
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
J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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  1. Nabanita Datta Gupta & Nina Smith & Mette Verner, 2006. "Child Care and Parental Leave in the Nordic Countries: A Model to Aspire to?," IZA Discussion Papers 2014, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Nabanita Datta Gupta & Marianne Simonsen, 2007. "Non-cognitive Child Outcomes and Universal High Quality Child Care," Economics Working Papers 2007-17, School of Economics and Management, University of Aarhus. [Downloadable!]
    Other versions:
  3. Nabanita Datta Gupta & Nina Smith & Mette Verner, 2008. "PERSPECTIVE ARTICLE: The impact of Nordic countries’ family friendly policies on employment, wages, and children," Review of Economics of the Household, Springer, vol. 6(1), pages 65-89, March. [Downloadable!] (restricted)
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