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The Supply of Child Care Labor

  • Blau, David M

This article presents estimates of the elasticity of supply of labor to child care. This parameter is an important determinant of the effects of child-care subsidies and regulations on the cost of child care. Using data from the Current Population Survey, there is evidence of an elasticity in the range of 1.2-1.9. This implies that the majority of the benefits of child-care subsidies accrue to consumers of child care. It is also consistent with the fact that child-care workers' wages remained flat in real terms in recent years, despite rapid growth in the demand for child care. Copyright 1993 by University of Chicago Press.

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Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 11 (1993)
Issue (Month): 2 (April)
Pages: 324-47

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Handle: RePEc:ucp:jlabec:v:11:y:1993:i:2:p:324-47
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