IDEAS home Printed from https://ideas.repec.org/a/kap/reveho/v8y2010i2p231-253.html
   My bibliography  Save this article

The availability of child care centers, perceived search costs and parental life satisfaction

Author

Listed:
  • Chikako Yamauchi

    ()

Abstract

The supply of formal childcare has expanded in many developed countries. There is ambiguity, however, in the theory that the entry of care providers increases consumers’ surplus and the welfare of households in a market with differentiated services, such as childcare. This study empirically investigates how perceived search costs and parental life satisfaction change when actual childcare availability is altered. It exploits the new panel data from Australia on the number of center-based childcare places per 100 children within a household’s residential area. The results show that an increase in the availability of centerbased childcare is associated with a decrease in perceived difficulty in finding ‘good quality’ childcare, as well as an improvement in mothers’ satisfaction with the increased availability of free time. These findings imply that the local availability of center-based childcare has enhanced the subjective well-being of parents.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • 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.
  • Handle: RePEc:kap:reveho:v:8:y:2010:i:2:p:231-253
    DOI: 10.1007/s11150-009-9071-8
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11150-009-9071-8
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    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. Greenhut, M L, et al, 1985. "An Anomaly in the Service Industry: The Effect of Entry on Fees," Economic Journal, Royal Economic Society, vol. 95(377), pages 169-177, March.
    3. Berlinski, Samuel & Galiani, Sebastian, 2007. "The effect of a large expansion of pre-primary school facilities on preschool attendance and maternal employment," Labour Economics, Elsevier, vol. 14(3), pages 665-680, June.
    4. Patricia M. Anderson & Philip B. Levine, 1999. "Child Care and Mothers' Employment Decisions," NBER Working Papers 7058, National Bureau of Economic Research, Inc.
    5. 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.
    6. Michael Baker & Jonathan Gruber & Kevin Milligan, 2008. "Universal Child Care, Maternal Labor Supply, and Family Well-Being," Journal of Political Economy, University of Chicago Press, vol. 116(4), pages 709-745, August.
    7. Jonah B. Gelbach, 2002. "Public Schooling for Young Children and Maternal Labor Supply," American Economic Review, American Economic Association, vol. 92(1), pages 307-322, March.
    8. Curtis Eaton, B. & Lipsey, Richard G., 1989. "Product differentiation," Handbook of Industrial Organization,in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 12, pages 723-768 Elsevier.
    9. Francis Teal, 1992. "The Use and Cost of Child Care in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 25(1), pages 3-14.
    10. Blau, David M, 1993. "The Supply of Child Care Labor," Journal of Labor Economics, University of Chicago Press, vol. 11(2), pages 324-347, April.
    11. 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.
    12. Loeb, Susanna & Bridges, Margaret & Bassok, Daphna & Fuller, Bruce & Rumberger, Russell W., 2007. "How much is too much? The influence of preschool centers on children's social and cognitive development," Economics of Education Review, Elsevier, vol. 26(1), pages 52-66, February.
    13. John G. Lynch , Jr. & Dan Ariely, 2000. "Wine Online: Search Costs Affect Competition on Price, Quality, and Distribution," Marketing Science, INFORMS, vol. 19(1), pages 83-103, April.
    14. Stephen Whelan & Anu Rammohan, 2005. "Child Care and Female Decisions," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 8(2), pages 203-225, June.
    15. Elizabeth Cascio, 2006. "Public Preschool and Maternal Labor Supply: Evidence from the Introduction of Kindergartens into American Public Schools," NBER Working Papers 12179, National Bureau of Economic Research, Inc.
    16. Siv Gustafsson & Frank Stafford, 1992. "Child Care Subsidies and Labor Supply in Sweden," Journal of Human Resources, University of Wisconsin Press, vol. 27(1), pages 204-230.
    17. Blau, David & Currie, Janet, 2006. "Pre-School, Day Care, and After-School Care: Who's Minding the Kids?," Handbook of the Economics of Education, Elsevier.
    18. James R. Walker, 1992. "New Evidence on the Supply of Child Care: A Statistical Portrait of Family Providers and an Analysis of Their Fees," Journal of Human Resources, University of Wisconsin Press, vol. 27(1), pages 40-69.
    19. Denise Doiron & Guyonne Kalb, 2005. "Demands for Child Care and Household Labour Supply in Australia," The Economic Record, The Economic Society of Australia, vol. 81(254), pages 215-236, September.
    20. Mark A. Satterthwaite, 1979. "Consumer Information, Equilibrium Industry Price, and the Number of Sellers," Bell Journal of Economics, The RAND Corporation, vol. 10(2), pages 483-502, Autumn.
    21. Susanna Loeb & Bruce Fuller & Sharon Lynn Kagan & Bidemi Carrol & Judith Carroll, 2003. "Child Care in Poor Communities: Early Learning Effects of Type, Quality, and Stability," NBER Working Papers 9954, National Bureau of Economic Research, Inc.
    22. David Blau, 2003. "Child Care Subsidy Programs," NBER Chapters,in: Means-Tested Transfer Programs in the United States, pages 443-516 National Bureau of Economic Research, Inc.
    23. 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.
    24. 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.
    25. Rammohan, Anu, 2004. "Child care and female employment decisions: A theoretical note," Working Papers 3, University of Sydney, School of Economics.
    26. 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.
    27. Silvia Pezzini, 2005. "The Effect of Women's Rights on Women's Welfare: Evidence from a Natural Experiment," Economic Journal, Royal Economic Society, vol. 115(502), pages 208-227, March.
    28. David M. Blau, 1997. "The Production of Quality in Child Care Centers," Journal of Human Resources, University of Wisconsin Press, vol. 32(2), pages 354-387.
    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


    Cited by:

    1. Pia S. Schober & Christian Schmitt, 2013. "Day-Care Expansion and Parental Subjective Well-Being: Evidence from Germany," SOEPpapers on Multidisciplinary Panel Data Research 602, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. repec:ces:ifodic:v:13:y:2015:i:1:p:19160201 is not listed on IDEAS
    3. Paul Hagstrom & Stephen Wu, 2016. "Are pregnant women happier? Racial and ethnic differences in the relationship between pregnancy and life satisfaction in the United States," Review of Economics of the Household, Springer, vol. 14(3), pages 507-527, September.
    4. Marie Connolly & Catherine Haeck, 2015. "Are Childcare Subsidies Good for Parental Well-being? Empirical Evidence from Three Countries," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(1), pages 09-15, 04.

    More about this item

    Keywords

    Child care; Entry; Search; Consumers’ surplus; Life satisfaction; J13; J22;

    JEL classification:

    • 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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:reveho:v:8:y:2010:i:2:p:231-253. 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: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.