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Childcare Subsidies, Wages, and Employment of Single Mothers

  • Erdal Tekin

This paper develops and estimates a model for the choice of part-time and full-time employment and the decision to pay for childcare among single mothers. The results indicate that a lower childcare price and a higher full-time wage rate both lead to an increase in overall employment and the use of paid childcare. The part-time wage effects are found to be too small to have significant behavioral implications. An analysis of cost-effectiveness indicates that the additional hours of work generated per dollar of government expenditure is larger for a childcare subsidy than a wage subsidy.

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File URL: http://jhr.uwpress.org/cgi/reprint/XLII/2/453
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Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 42 (2007)
Issue (Month): 2 ()
Pages:

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Handle: RePEc:uwp:jhriss:v:42:y:2007:i2:p453-487
Contact details of provider: Web page: http://jhr.uwpress.org/

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  1. Patricia M. Anderson & Phillip B. Levine, 1999. "Child Care and Mothers' Employment Decisions," JCPR Working Papers 64, Northwestern University/University of Chicago Joint Center for Poverty Research.
  2. Rebecca M. Blank & David Card & Philip K. Robins, 1999. "Financial Incentives for Increasing Work and Income Among Low-Income Families," NBER Working Papers 6998, National Bureau of Economic Research, Inc.
  3. David Blau, 2003. "Child Care Subsidy Programs," NBER Chapters, in: Means-Tested Transfer Programs in the United States, pages 443-516 National Bureau of Economic Research, Inc.
  4. David Blau & Philip Robins, 1991. "Child care demand and labor supply of young mothers over time," Demography, Springer, vol. 28(3), pages 333-351, August.
  5. Lisa Barrow, 1996. "An Analysis of Women's Labor Force Participation Following First Birth," Working Papers 742, Princeton University, Department of Economics, Industrial Relations Section..
  6. Berger, Mark C & Black, Dan A, 1992. "Child Care Subsidies, Quality of Care, and the Labor Supply of Low-Income, Single Mothers," The Review of Economics and Statistics, MIT Press, vol. 74(4), pages 635-42, November.
  7. Rebecca Blank & Craig Riddell, 1985. "Simultaneously Modelling the Supply of Weeks and Hours of Work Among Female Household Heads," Working Papers 577, Princeton University, Department of Economics, Industrial Relations Section..
  8. 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.
  9. Averett, S.L. & Peters, H.E. & Waldman, D.M., 1992. "Tax Credits, Labor Supply, and Child Care," University of Chicago - Economics Research Center 92-9, Chicago - Economics Research Center.
  10. 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.
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