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Child-care costs and mothers’ employment rates: an empirical analysis for Austria

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  • Helmut Mahringer

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  • Christine Zulehner

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Abstract

The availability of affordable formal child care is an important determinant of the labour force participation of parents, particularly of mothers, which is increasingly discussed. This paper examines the impact of child-care costs on the employment rates of mothers with children younger than 12 years. Using data from the 1995 and 2002 Austrian Microcensus, combined with administrative wage data from Austrian tax records, we estimate the impact of net wages and child-care costs on mothers’ employment probabilities. In line with theoretical considerations and most of the empirical literature, we find a negative elasticity of mothers’ employment rates to child-care costs as well as positive elasticity with regard to net wages. The point estimates for the impact of net wages and child-care costs are of similar absolute size. Additionally, the empirical results indicate that higher family income reduces the employment probability of mothers. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Helmut Mahringer & Christine Zulehner, 2015. "Child-care costs and mothers’ employment rates: an empirical analysis for Austria," Review of Economics of the Household, Springer, vol. 13(4), pages 837-870, December.
  • Handle: RePEc:kap:reveho:v:13:y:2015:i:4:p:837-870
    DOI: 10.1007/s11150-013-9222-9
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    References listed on IDEAS

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    Cited by:

    1. Helmut Mahringer & Christine Zulehner, 2015. "Child-care costs and mothers’ employment rates: an empirical analysis for Austria," Review of Economics of the Household, Springer, vol. 13(4), pages 837-870, December.
    2. repec:wfo:wstudy:60797 is not listed on IDEAS
    3. repec:wfo:monber:y:2017:i:9 is not listed on IDEAS
    4. Sarkar, Sudipa & Sahoo, Soham & Klasen, Stephan, 2017. "Employment Transitions of Women in India: A Panel Analysis," IZA Discussion Papers 11086, Institute for the Study of Labor (IZA).
    5. repec:wfo:monber:y:2017:i:9:p:713-725 is not listed on IDEAS
    6. repec:wfo:monber:y:2018:i:2:p:105-120 is not listed on IDEAS
    7. Taryn W. Morrissey, 2017. "Child care and parent labor force participation: a review of the research literature," Review of Economics of the Household, Springer, vol. 15(1), pages 1-24, March.

    More about this item

    Keywords

    Child-care; Labour supply; Bivariate sample selection; Matched survey and administrative data; C25; J13; J22;

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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