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Child Care Availability, Quality and Affordability: Are Local Problems Related to Labour Supply?

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  • ROBERT BREUNIG
  • ANDREW WEISS
  • CHIKAKO YAMAUCHI
  • XIAODONG GONG
  • JOSEPH MERCANTE

Abstract

We examine whether responses to survey questions about child care availability, quality and cost, aggregated at the local geographical level, have any explanatory power in models of partnered female and lone parent labour supply. We find evidence that partnered women and lone parents who live in areas with more reports of lack of availability, low quality or costly child care work fewer hours and are less likely to work than women in areas with fewer reported difficulties with child care.

Suggested Citation

  • Robert Breunig & Andrew Weiss & Chikako Yamauchi & Xiaodong Gong & Joseph Mercante, 2011. "Child Care Availability, Quality and Affordability: Are Local Problems Related to Labour Supply?," The Economic Record, The Economic Society of Australia, vol. 87(276), pages 109-124, March.
  • Handle: RePEc:bla:ecorec:v:87:y:2011:i:276:p:109-124
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    File URL: http://hdl.handle.net/10.1111/j.1475-4932.2010.00707.x
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    References listed on IDEAS

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    1. Anu Rammohan & Stephen Whelan, 2007. "The Impact Of Childcare Costs On The Full-Time/Part-Time Employment Decisions Of Australian Mothers," Australian Economic Papers, Wiley Blackwell, vol. 46(2), pages 152-169, June.
    2. Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, vol. 42(4), pages 679-694, July.
    3. Robert Breunig & Joseph Mercante, 2010. "The Accuracy of Predicted Wages of the Non-Employed and Implications for Policy Simulations from Structural Labour Supply Models," The Economic Record, The Economic Society of Australia, vol. 86(272), pages 49-70, March.
    4. David M. Blau & H. Naci Mocan, 2002. "The Supply Of Quality In Child Care Centers," The Review of Economics and Statistics, MIT Press, vol. 84(3), pages 483-496, August.
    5. Rebecca Cassells & Justine McNamara & Rachel Lloyd & Ann Harding, 2007. "Child Care Affordability and Availability," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 14(2), pages 123-139.
    6. Patricia M. Anderson & Philip B. Levine, 1999. "Child Care and Mothers' Employment Decisions," NBER Working Papers 7058, National Bureau of Economic Research, Inc.
    7. Michael Lokshin, 2004. "Household Childcare Choices and Women’s Work Behavior in Russia," Journal of Human Resources, University of Wisconsin Press, vol. 39(4).
    8. Robert Breunig & Deborah A. Cobb-Clark & Xiaodong Gong, 2008. "Improving the Modelling of Couples' Labour Supply," The Economic Record, The Economic Society of Australia, vol. 84(267), pages 466-485, December.
    9. Guyonne Kalb & Wang-Sheng Lee, 2008. "Childcare Use And Parents' Labour Supply In Australia ," Australian Economic Papers, Wiley Blackwell, vol. 47(3), pages 272-295, September.
    10. Xiaodong Gong & Robert Breunig, 2010. "Child care availability, quality and affordability: are local problems related to maternal labour supply ?," Treasury Working Papers 2010-02, The Treasury, Australian Government, revised Apr 2010.
    11. Katharina Wrohlich, 2006. "Labor Supply and Child Care Choices in a Rationed Child Care Market," Discussion Papers of DIW Berlin 570, DIW Berlin, German Institute for Economic Research.
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    15. Naci Mocan, 2007. "Can consumers detect lemons? An empirical analysis of information asymmetry in the market for child care," Journal of Population Economics, Springer;European Society for Population Economics, vol. 20(4), pages 743-780, October.
    16. Daniela Del Boca & Daniela Vuri, 2007. "The mismatch between employment and child care in Italy: the impact of rationing," Journal of Population Economics, Springer;European Society for Population Economics, vol. 20(4), pages 805-832, October.
    17. Sandra L. Hofferth & Douglas A. Wissoker, 1992. "Price, Quality, and Income in Child Care Choice," Journal of Human Resources, University of Wisconsin Press, vol. 27(1), pages 70-111.
    18. David M. Blau & Alison P. Hagy, 1998. "The Demand for Quality in Child Care," Journal of Political Economy, University of Chicago Press, vol. 106(1), pages 104-146, February.
    19. Mark Wooden & Simon Freidin & Nicole Watson, 2002. "The Household, Income and Labour Dynamics in Australia (HILDA)Survey: Wave 1," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 35(3), pages 339-348.
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    Citations

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    Cited by:

    1. Jeff Borland, 2011. "The Australian Labour Market in the 2000s: The Quiet Decade," RBA Annual Conference Volume,in: Hugo Gerard & Jonathan Kearns (ed.), The Australian Economy in the 2000s Reserve Bank of Australia.
    2. repec:rnp:ecopol:ep1715 is not listed on IDEAS
    3. Robert Breunig & Xiaodong Gong & Anthony King, 2012. "Partnered Women's Labour Supply and Child‐Care Costs in Australia: Measurement Error and the Child‐Care Price," The Economic Record, The Economic Society of Australia, vol. 88(s1), pages 51-69, June.
    4. Barbara Hanel, 2013. "The Impact of Paid Maternity Leave Rights on Labour Market Outcomes," The Economic Record, The Economic Society of Australia, vol. 89(286), pages 339-366, September.
    5. Barbara Hanel, 2012. "The Impact of Paid Maternity Leave on Labour Market Outcomes," Melbourne Institute Working Paper Series wp2012n19, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    6. repec:exl:22evid:v:2013:y:2013:i:4:p:1-17 is not listed on IDEAS
    7. Ross Guest & Nick Parr, 2013. "Family policy and couples’ labour supply: an empirical assessment," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(4), pages 1631-1660, October.

    More about this item

    Keywords

    J22 ; J30 ; J64 ;

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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