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Labour Supply and Childcare for British Mothers in Two-Parent Families: A Structural Approach

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Author Info
Antonia Parera-Nicolau () (Universitat de les Illes Balears)
Karen Mumford () (University of York and IZA Bonn)

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Abstract

We develop and estimate a structural model of labour supply for British two parent families, taking explicit account of the importance of childcare related variables. We find working mothers do not increase their working hours when hourly wages increase, indeed, they are more likely to reduce their hours. The major inducement for working mothers to increase their working hours, that we find, is the provision of high quality formal childcare. Implying that government policy aiming at increasing working hours amongst British mothers of pre-school children may need to focus on the quality as well as the quantity of formal child care that is available.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1908.

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Length: 42 pages
Date of creation: Dec 2005
Date of revision:
Handle: RePEc:iza:izadps:dp1908

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Related research
Keywords: mothers; Britain; childcare; parents labour supply;

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Find related papers by JEL classification:
J2 - Labor and Demographic Economics - - Demand and Supply of Labor
J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
J80 - Labor and Demographic Economics - - Labor Standards - - - General

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Other versions:
  3. Blundell, Richard & Chiappori, Pierre-André & Magnac, Thierry & Meghir, Costas, 2005. "Collective Labour Supply: Heterogeneity and Nonparticipation," IDEI Working Papers 373, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
    Other versions:
  4. Richard Blundell & Thomas MaCurdy, 1998. "Labour supply: A review of alternative approaches," IFS Working Papers W98/18, Institute for Fiscal Studies.
    Other versions:
  5. John W. Budd & Karen Mumford, 2004. "Trade unions and family-friendly policies in Britain," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 57(2), pages 204-222, January. [Downloadable!] (restricted)
    Other versions:
  6. Alan Duncan & Gillian Paull & Jayne Taylor, 2001. "Price and quality in the UK childcare market," IFS Working Papers W01/14, Institute for Fiscal Studies. [Downloadable!]
  7. Maria Concetta Chiuri, . "The Unitary vs. the Collective Model of Household Labour Supply with Child Care: An Empirical Test on a Sample of Italian Households," Discussion Papers 97/12, Department of Economics, University of York.
  8. Chiappori, P.A., 1994. "Introducing Household Production in Collective Models of Labour Suply," DELTA Working Papers 94-18, DELTA (Ecole normale supérieure).
    Other versions:
  9. Richard Blundell & Alan Duncan & Julian McCrae & Costas Meghir, 2000. "The labour market impact of the working families’ tax credit," Fiscal Studies, Institute for Fiscal Studies, vol. 21(1), pages 75-103, March. [Downloadable!]
  10. Soest, Arthur van & Kapteyn, Arie & Kooreman, Peter, 1993. "Coherency and regularity of demand systems with equality and inequality constraints," Journal of Econometrics, Elsevier, vol. 57(1-3), pages 161-188. [Downloadable!] (restricted)
  11. Ribar, David C, 1995. "A Structural Model of Child Care and the Labor Supply of Married Women," Journal of Labor Economics, University of Chicago Press, vol. 13(3), pages 558-97, July. [Downloadable!] (restricted)
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  12. Hilary Hoynes & Richard Blundell, 2001. "Has "In-Work" Benefit Reform Helped the Labour Market?," NBER Working Papers 8546, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  13. David T. Ellwood, 2000. "Anti-Poverty Policy for Families in the Next Century: From Welfare to Work--and Worries," Journal of Economic Perspectives, American Economic Association, vol. 14(1), pages 187-198, Winter. [Downloadable!] (restricted)
  14. Duncan, Alan & Giles, Christopher, 1996. "Labour Supply Incentives and Recent Family Credit Reforms," Economic Journal, Royal Economic Society, vol. 106(434), pages 142-55, January. [Downloadable!] (restricted)
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    Other versions:
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