Advanced Search
MyIDEAS: Login to save this paper or follow this series

Child care and female employment decisions: A theoretical note

Contents:

Author Info

  • Rammohan, Anu

Abstract

The empirical literature is divided over the issue of whether child care costs are a significant barrier to female employment. In this paper we develop a theoretical model that contributes to the literature (1) by allocating mother's time between work, leisure and child care and (2) by introducing the possibility of uncertainty in second period income because of a greater probability of divorce. We examine how these changes affect decisions on labour supply and purchase of child care. We show that although an increase in the price of child care reduces the demand for child care, it has an ambiguous impact on female employment decisions. From a policy point of view, this implies that government subsidies aimed at mitigating the cost of child care, may not have their desired impact in encouraging greater female labour force participation. However, an increase in the probability of child care unambiguously increases female labour supply and purchase of child care.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://hdl.handle.net/2123/7641
Download Restriction: no

Bibliographic Info

Paper provided by University of Sydney, School of Economics in its series Working Papers with number 3.

as in new window
Length:
Date of creation: Jul 2004
Date of revision:
Handle: RePEc:syd:wpaper:2123/7641

Contact details of provider:
Postal: Sydney, NSW 2006
Phone: 61 +2 9351 5055
Fax: 61 +2 9351 4341
Email:
Web page: http://sydney.edu.au/arts/economics
More information through EDIRC

Related research

Keywords: childcare; female labour supply;

References

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.:
as in new window
  1. Deborah Schofield & Josh Polette, 1998. "Measuring the Impact of Child Care Subsidies on the Incomes of Mothers Returning to Work," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 31(1), pages 47-62.
  2. Ribar, D.C., 1993. "A Structural Model of Child Care and the Labor Supply of Married Women," Papers 5-93-1, Pennsylvania State - Department of Economics.
  3. Deborah Cobb-Clark & Amy Liu & Deborah Mitchell, 1999. "Reassessing the Role of Child Care Costs in the Work and Care Decisions of Australian Families," CEPR Discussion Papers 409, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  4. Hazel Bateman & John Piggott, 1997. "Private Pensions in OECD Countries: Australia," OECD Labour Market and Social Policy Occasional Papers 23, OECD Publishing.
  5. Connelly, Rachel, 1992. "The Effect of Child Care Costs on Married Women's Labor Force Participation," The Review of Economics and Statistics, MIT Press, vol. 74(1), pages 83-90, February.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Xiaodong Gong & Robert Breunig & Anthony King, 2011. "Partnered women's labour supply and child care costs in Australia: Measurement error and the child care price," NATSEM Working Paper Series 11/13, University of Canberra, National Centre for Social and Economic Modelling.
  2. Xiaodong Gong & Robert Breunig & Anthony King, 2010. "New estimates of the relationship between female labour supply and the cost, availability, and quality of child care," Economic Roundup, Treasury, Australian Government, issue 1, pages 51-62, April.
  3. Anu Rammohan & Stephen Whelan, 2006. "Child Care Costs and the Employment Status of Married Australian Mothers," CEPR Discussion Papers 517, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  4. Robert Breunig & Joseph Mercante, 2009. "The accuracy of predicted wages of the non-employed and implications for policy simulations from structural labour supply models," Treasury Working Papers 2009-03, Treasury, Australian Government, revised Mar 2009.
  5. Guyonne Kalb & Wang-Sheng Lee, 2007. "Childcare Use and Parents’ Labour Supply in Australia," Melbourne Institute Working Paper Series wp2007n13, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  6. Xiaodong Gong & Robert Breunig, 2012. "Estimating net chid care price elasticities of partnered women with pre-school children using a discrete structural labour supply-child care model," Treasury Working Papers 2012-01, Treasury, Australian Government, revised Nov 2012.
  7. Xiaodong Gong & Robert Breuing, 2011. "Estimating Net Child Care Price Elasticities of Partnered Women With Pre-School Children Using a Discrete Structural Labour Supply-Child Care Model," CEPR Discussion Papers 653, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  8. Ross Guest & Nick Parr, 2013. "Family policy and couples’ labour supply: an empirical assessment," Journal of Population Economics, Springer, vol. 26(4), pages 1631-1660, October.
  9. Chikako Yamauchi, 2010. "The availability of child care centers, perceived search costs and parental life satisfaction," Review of Economics of the Household, Springer, vol. 8(2), pages 231-253, June.
  10. Yin King Fok & Sung-Hee Jeon & Roger Wilkins, 2009. "Does Part-Time Employment Help or Hinder Lone Mothers Movements into Full-Time Employment?," Melbourne Institute Working Paper Series wp2009n25, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:syd:wpaper:2123/7641. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vanessa Holcombe).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.