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Childcare Subsidies, Wages, and Employment of Single Mothers

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  • Erdal Tekin

Abstract

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.

Suggested Citation

  • Erdal Tekin, 2007. "Childcare Subsidies, Wages, and Employment of Single Mothers," Journal of Human Resources, University of Wisconsin Press, vol. 42(2).
    • Handle: RePEc:uwp:jhriss:v:42:y:2007:i2:p453-487
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    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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