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Labor Supply and Child Care Costs: The Effect of Rationing Author info | Abstract | Publisher info | Download info | Related research | Statistics Daniela Del Boca () (University of Turin, CHILD and IZA Bonn)
Daniela Vuri () (University of Florence, CHILD and IZA Bonn)
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In Italy the participation of women has not increased very much in the last few decades relative to other developed countries and it is still among the lowest in Europe. The female employment rate stands almost 13 percentage points below the EU average and 22 below the Lisbon target. One of the most important reasons is related to the characteristics of child care system. In this paper we analyze the characteristics of the child care system in Italy and its relationship to the labor market participation decision of mothers. We present a simple discrete choice framework in which the two decisions can be jointly considered, which also allows for simple forms of rationing and estimate a bivariate probit model of the child care and employment decisions and interpret the results within the framework of our model. We find evidence that rationing is an important factor in interpreting price effects on utilization rates.
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number
1779.
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Length: 41 pages
Date of creation: Sep 2005Date of revision:
Handle: RePEc:iza:izadps:dp1779Contact details of provider: Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany Phone: +49 228 3894 223 Fax: +49 228 3894 180 Web page: http://www.iza.org
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Keywords: labor market decisions fertility child care Other versions of this item:
Find related papers by JEL classification: J2 - Labor and Demographic Economics - - Demand and Supply of Labor C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables D1 - Microeconomics - - Household Behavior
This paper has been announced in the following NEP Reports :
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Katharina Wrohlich, 2004.
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Discussion Papers of DIW Berlin
412, DIW Berlin, German Institute for Economic Research.
[Downloadable!]
Del Boca, Daniela & Locatelli, Marilena & Vuri, Daniela, 2004.
"Child Care Choices by Italian Households ,"
IZA Discussion Papers
983, Institute for the Study of Labor (IZA).
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Katharina Wrohlich, 2006.
"Labor Supply and Child Care Choices in a Rationed Child Care Market ,"
IZA Discussion Papers
2053, Institute for the Study of Labor (IZA).
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