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Child Care and Labour Market Participation in France : Do Monetary Incentives Matter ?

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  • Guillaume Allegre
  • Véronique Simonnet
  • Catherine Sofer

Abstract

This paper presents a model of the child care arrangements and labour supply of mothers with young children (under three). We use French data to estimate simultaneously mothers' labour force participation and type of child care chosen. The independent variables include estimated child care costs and mother's potential incomes obtained by simulating the benefits and taxes associated with different participation choices (working full-time, part-time or out of the labour market). Availability of free child care (from family and relatives) is also taken into account. We show that monetary incentives do play a role. Child care costs have a direct effect on mothers'

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  • Guillaume Allegre & Véronique Simonnet & Catherine Sofer, 2015. "Child Care and Labour Market Participation in France : Do Monetary Incentives Matter ?," Annals of Economics and Statistics, GENES, issue 117-118, pages 115-139.
  • Handle: RePEc:adr:anecst:y:2015:i:117-118:p:115-139
    DOI: 10.15609/annaeconstat2009.117-118.115
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