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The joint decision of female labour supply and childcare in Italy under costs and availability constraints

Author

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  • Francesco Figari

    (University of Insubria
    ISER University of Essex
    CeRP Collegio Carlo Alberto
    Dondena University Bocconi)

  • Edlira Narazani

    (European Commission, Joint Research Centre (JRC))

Abstract

It is widely recognized that childcare has important pedagogical, economic and social effects on both children and parents. This paper is the first attempt to estimate a joint structural model of female labour supply and childcare behavior applied to Italy in order to analyse the effects of relaxing the existing constraints in terms of childcare availability and costs by considering public, private and informal childcare. Results suggest that Italian households might alter their childcare and labour supply behaviors substantially if the coverage rate of formal childcare increases to reach the European targets. Overall, increasing child care coverage is estimated to be more effective in enhancing labour incentives than decreasing existing child care costs, at the same budgetary cost.

Suggested Citation

  • Francesco Figari & Edlira Narazani, 2020. "The joint decision of female labour supply and childcare in Italy under costs and availability constraints," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(2), pages 411-439, July.
    • Handle: RePEc:spr:epolit:v:37:y:2020:i:2:d:10.1007_s40888-019-00160-w
    DOI: 10.1007/s40888-019-00160-w
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    More about this item

    Keywords

    Childcare; Female labour market participation; Labour supply; Italy; Microsimulation; EUROMOD;
    All these keywords.

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • 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
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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