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Child Care Costs and the Employment Decision of Women: Canadian Evidence

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  • Gordon Cleveland
  • Morley Gunderson
  • Douglas Hyatt

Abstract

The authors estimate the joint decision for women with preschool children to engage in paid employment and to purchase market forms of child care. The results confirm those found in most U.S. studies, indicating that child care costs exert a significant negative effect on the labor supply of women with children and on their decision to purchase child care. As well, the expected wage of the mother exerts a significant positive impact on both the decision to purchase market forms of child care and the decision to engage in paid unemployment.

Suggested Citation

  • Gordon Cleveland & Morley Gunderson & Douglas Hyatt, 1996. "Child Care Costs and the Employment Decision of Women: Canadian Evidence," Canadian Journal of Economics, Canadian Economics Association, vol. 29(1), pages 132-151, February.
  • Handle: RePEc:cje:issued:v:29:y:1996:i:1:p:132-51
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