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Childcare Markets, Parental Labor Supply, and Child Development

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  • Samuel Berlinski
  • Maria Marta Ferreyra
  • Luca Flabbi
  • Juan David Martin

Abstract

We develop and estimate a model of supply and demand for childcare. On the demand side, households make consumption, labor supply, and childcare decisions. On the supply side, centers make entry, price, and quality decisions. In addition, both paid and informal caregivers are available. Child development is a function of the time spent with parents and nonparental care providers. We estimate the model using data from the Early Childhood Longitudinal Study, Birth Cohort, and perform policy experiments. Vouchers that can be used only in high-quality centers or by working mothers are particularly effective, since they deliver child development gains while increasing mothers’ labor supply.

Suggested Citation

  • Samuel Berlinski & Maria Marta Ferreyra & Luca Flabbi & Juan David Martin, 2024. "Childcare Markets, Parental Labor Supply, and Child Development," Journal of Political Economy, University of Chicago Press, vol. 132(6), pages 2113-2177.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/728698
    DOI: 10.1086/728698
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    3. Herbst, Chris M., 2022. "Child Care in the United States: Markets, Policy, and Evidence," IZA Discussion Papers 15547, Institute of Labor Economics (IZA).

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    More about this item

    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
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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