Employment of New Mothers and Child Care Choice: Differences by Children's Age
This paper examines a woman's decisions about when to return to market work in the two years following childbirth and the type of child care she chooses. Own wages relate positively to an early return to work, while higher family income delays return to work. Wages and income did not significantly affect choice of market versus nonmarket child care. Greater child care tax credits increased early return to work (within three months) but had little effect on later labor supply. Contrary to expectations, tax credits did not affect child care choice, but predicted early market reentry.
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