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Employment and Child Care Decisions of Mothers and the Well-being of their Children

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  • Raquel Bernal

Abstract

This paper develops and estimates a dynamic model of employment and child care decisions of women after birth in order to evaluate the effects of mothers' decisions on children's cognitive ability. I use data from the NLSY to estimate the model. The results suggest that the effects of maternal employment and child care use on children's cognitive ability are rather sizeable. In fact, having a full-time working mother who uses child care during the first 5 years after the birth of the child is associated with a 10.4% reduction in ability test scores. Based on the estimates of the model, I assess the impact of policies related to parental leave, child care and other incentives to stay at home after birth on women's decisions and children's outcomes

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Bibliographic Info

Paper provided by Econometric Society in its series Econometric Society 2004 North American Winter Meetings with number 361.

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Date of creation: 11 Aug 2004
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Handle: RePEc:ecm:nawm04:361

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Keywords: Female employment; child care and child development;

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References

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  1. Francine D. Blau & Adam J. Grossberg, 1990. "Maternal Labor Supply and Children's Cognitive Development," NBER Working Papers 3536, National Bureau of Economic Research, Inc.
  2. repec:ese:iserwp:2000-31 is not listed on IDEAS
  3. Willis, Robert J., 1987. "Wage determinants: A survey and reinterpretation of human capital earnings functions," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 10, pages 525-602 Elsevier.
  4. Desai, S. & Chase-Lansdale, P.L. & Michael, R.T., 1988. "Mother Or Market? Effects Of Maternal Employment On Cognitive Development Of Four-Year-Old Children," University of Chicago - Economics Research Center 88-11, Chicago - Economics Research Center.
  5. Michael P. Keane & Kenneth I. Wolpin, 1994. "The solution and estimation of discrete choice dynamic programming models by simulation and interpolation: Monte Carlo evidence," Staff Report 181, Federal Reserve Bank of Minneapolis.
  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. John Geweke & Michael Keane & David Runkle, 1994. "Alternative computational approaches to inference in the multinomial probit model," Staff Report 170, Federal Reserve Bank of Minneapolis.
  8. Michael P. Keane & Kenneth I. Wolpin, 1995. "The career decisions of young men," Working Papers 559, Federal Reserve Bank of Minneapolis.
  9. Moffitt, Robert, 1984. "The Estimation of a Joint Wage-Hours Labor Supply Model," Journal of Labor Economics, University of Chicago Press, vol. 2(4), pages 550-66, October.
  10. Ermisch, John & Francesconi, Marco, 2000. "The Effect of Parents' Employment on Children's Educational Attainment," IZA Discussion Papers 215, Institute for the Study of Labor (IZA).
  11. Karen Norberg, 1998. "The Effects of Daycare Reconsidered," NBER Working Papers 6769, National Bureau of Economic Research, Inc.
  12. Claudia Olivetti, 2005. "Changes in Women's Hours of Market Work: The Role of Returns to Experience," Boston University - Department of Economics - Macroeconomics Working Papers Series WP2005-008, Boston University - Department of Economics, revised Jun 2006.
  13. Christopher J. Ruhm, 2000. "Parental Employment and Child Cognitive Development," NBER Working Papers 7666, National Bureau of Economic Research, Inc.
  14. Heckman, James J & Sedlacek, Guilherme, 1985. "Heterogeneity, Aggregation, and Market Wage Functions: An Empirical Model of Self-selection in the Labor Market," Journal of Political Economy, University of Chicago Press, vol. 93(6), pages 1077-1125, December.
  15. Robert Haveman & Barbara Wolfe, 1995. "The Determinants of Children's Attainments: A Review of Methods and Findings," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1829-1878, December.
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Cited by:
  1. Hau Chyi & Orgul Ozturk, 2008. "The Effects of Single Mothers' Welfare Participation and Work Decisions on Children's Attainments," Summer North American Stata Users' Group Meetings 2008 9, Stata Users Group, revised 28 Aug 2008.
  2. Diego Restuccia & Carlos Urrutia, 2002. "Intergenerational Persistence of Earnings: The Role of Early and College Education," Working Papers diegor-02-03, University of Toronto, Department of Economics.
  3. Alessandro Lizzeri & Marciano Siniscalchi, 2007. "Parental Guidance and Supervised Learning," NajEcon Working Paper Reviews 843644000000000090, www.najecon.org.
  4. Larry E. Jones & Alice Schoonbroodt & Michèle Tertilt, 2008. "Fertility Theories: Can They Explain the Negative Fertility-Income Relationship?," NBER Working Papers 14266, National Bureau of Economic Research, Inc.
  5. John Ermisch, 2003. "How Do Parents Affect the Life Chances of Their Children as Adults? An Idiosyncratic Review," Social and Economic Dimensions of an Aging Population Research Papers 101, McMaster University.

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