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Household Childcare Choices and Women’s Work Behavior in Russia

  • Michael Lokshin

The paper models household demand for childcare, mothers’ labor force participation and mothers’ working hours in Russia. The model estimates the effects of the price of childcare, mother’s wage, and household income on household behavior and well-being. Reduced-form models of the discrete and continuous household choices are estimated jointly using the Semi- Parametric Full Information Maximum Likelihood method. This method controls for the error term correlations across outcomes, and the correlation of the error terms that can result when panel data are used. The estimations indicate that mothers’ labor force participation and working hours are responsive to changes in the price of childcare and hourly wages. The simulations presented in this paper show that family allowance transfers— intended as a means of reducing poverty—do not have a significant effect on a household’s choice of childcare arrangements. Replacing family allowances with childcare subsidies may have a strong positive effect on women’s labor force participation and thus can be effective in reducing poverty. Giorgio

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File URL: http://jhr.uwpress.org/cgi/reprint/XXXIX/4/1094
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Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 39 (2004)
Issue (Month): 4 ()
Pages:

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Handle: RePEc:uwp:jhriss:v:39:y:2004:i:4:p1094-1115
Contact details of provider: Web page: http://jhr.uwpress.org/

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  1. Lokshin, Michael & Popkin, Barry M, 1999. "The Emerging Underclass in the Russian Federation: Income Dynamics, 1992-1996," Economic Development and Cultural Change, University of Chicago Press, vol. 47(4), pages 803-29, July.
  2. Gordon Cleveland & Morley Gunderson & Douglas Hyatt, 1996. "Child Care Costs and the Employment Decision of Women: Canadian Evidence," Canadian Journal of Economics, Canadian Economics Association, vol. 29(1), pages 132-51, February.
  3. Mroz, Thomas A., 1999. "Discrete factor approximations in simultaneous equation models: Estimating the impact of a dummy endogenous variable on a continuous outcome," Journal of Econometrics, Elsevier, vol. 92(2), pages 233-274, October.
  4. 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.
  5. Kimmel, Jean, 1995. "The Effectiveness of Child-Care Subsidies in Encouraging the Welfare-to-Work Transition of Low-Income Single Mothers," American Economic Review, American Economic Association, vol. 85(2), pages 271-75, May.
  6. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  7. Ribar, D.C., 1991. "A Structural Model of Child Care and the Labor Supply of Married Women," Papers 1-91-1, Pennsylvania State - Department of Economics.
  8. Connelly, Rachel, 1992. "The Effect of Child Care Costs on Married Women's Labor Force Participation," The Review of Economics and Statistics, MIT Press, vol. 74(1), pages 83-90, February.
  9. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
  10. Mroz, Thomas A & Popkin, Barry M, 1995. "Poverty and the Economic Transition in the Russian Federation," Economic Development and Cultural Change, University of Chicago Press, vol. 44(1), pages 1-31, October.
  11. Jacob Mincer & Solomon Polacheck, 1974. "Family Investments in Human Capital: Earnings of Women," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 397-431 National Bureau of Economic Research, Inc.
  12. David M. Blau & Alison P. Hagy, 1998. "The Demand for Quality in Child Care," Journal of Political Economy, University of Chicago Press, vol. 106(1), pages 104-146, February.
  13. Jacob Mincer & Solomon Polachek, 1974. "Family Investments in Human Capital: Earnings of Women," NBER Chapters, in: Marriage, Family, Human Capital, and Fertility, pages 76-110 National Bureau of Economic Research, Inc.
  14. Elena Glinskaya & Thomas A. Mroz, 2000. "The gender gap in wages in Russia from 1992 to 1995," Journal of Population Economics, Springer, vol. 13(2), pages 353-386.
  15. Blau, David M & Robins, Philip K, 1988. "Child-Care Costs and Family Labor Supply," The Review of Economics and Statistics, MIT Press, vol. 70(3), pages 374-81, August.
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