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Do child care regulations affect the child care and labor markets?

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  • David M. Blau

    (Department of Economics and Carolina Population Center, University of North Carolina, Chapel Hill)

Abstract

The effect of child care regulations on outcomes in the child care market and the labor market for mothers of young children is examined. The analysis uses a time series of cross sections and examines the robustness of previous cross-section findings to controls for state-level heterogeneity. Child care regulations as a group have statistically significant effects on most outcomes, with or without state fixed effects. However, regulations do not vary enough within state over time to allow precise identification of most individual regulation effects. The great majority of estimated regulation effects in all specifications are small and insignificantly different from 0. Some of the estimated effects seem reasonable in sign and magnitude, but others are clearly implausible. © 2003 by the Association for Public Policy Analysis and Management.

Suggested Citation

  • David M. Blau, 2003. "Do child care regulations affect the child care and labor markets?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 22(3), pages 443-465.
  • Handle: RePEc:wly:jpamgt:v:22:y:2003:i:3:p:443-465
    DOI: 10.1002/pam.10140
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    References listed on IDEAS

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    1. William T. Gormley, 1991. "State regulations and the availability of child-care services," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 10(1), pages 78-95.
    2. David C. Ribar, 1992. "Child Care and the Labor Supply of Married Women: Reduced Form Evidence," Journal of Human Resources, University of Wisconsin Press, vol. 27(1), pages 134-165.
    3. 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 635-642, November.
    4. Chipty, Tasneem, 1995. "Economic Effects of Quality Regulations in the Day-Care Industry," American Economic Review, American Economic Association, vol. 85(2), pages 419-424, May.
    5. Marcia Meyers & Theresa Heintze & Douglas Wolf, 2002. "Child care subsidies and the employment of welfare recipients," Demography, Springer;Population Association of America (PAA), vol. 39(1), pages 165-179, February.
    6. Joskow, Paul L. & Rose, Nancy L., 1989. "The effects of economic regulation," Handbook of Industrial Organization,in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 25, pages 1449-1506 Elsevier.
    7. Blau, David M, 1993. "The Supply of Child Care Labor," Journal of Labor Economics, University of Chicago Press, vol. 11(2), pages 324-347, April.
    8. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
    9. David Blau & Erdal Tekin, 2001. "The Determinants and Consequences of Child Care Subsidy Receipt by Low-Income Families," JCPR Working Papers 213, Northwestern University/University of Chicago Joint Center for Poverty Research.
    10. Susan Rose-Ackerman, 1983. "Unintended consequences: Regulating the quality of subsidized day care," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 3(1), pages 14-30.
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    Citations

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    Cited by:

    1. V. Joseph Hotz & Mo Xiao, 2005. "The Impact of Minimum Quality Standards on Firm Entry, Exit and Product Quality: The Case of the Child Care Market," Working Papers 05-28, Center for Economic Studies, U.S. Census Bureau.
    2. Bastos, Paulo & Cristia, Julian, 2012. "Supply and quality choices in private child care markets: Evidence from São Paulo," Journal of Development Economics, Elsevier, vol. 98(2), pages 242-255.
    3. Randal Heeb & M. Rebecca Kilburn, 2004. "The Effects of State Regulations on Childcare Prices and Choices," Working Papers 137, RAND Corporation.
    4. Chris Herbst, 2010. "The labor supply effects of child care costs and wages in the presence of subsidies and the earned income tax credit," Review of Economics of the Household, Springer, vol. 8(2), pages 199-230, June.
    5. Blau, David & Currie, Janet, 2006. "Pre-School, Day Care, and After-School Care: Who's Minding the Kids?," Handbook of the Economics of Education, Elsevier.
    6. Gordon Cleveland & Michael Krashinsky, 2009. "The nonprofit advantage: Producing quality in thick and thin child care markets," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 28(3), pages 440-462.
    7. Mario Cuevas & Sigfrido Lee & Bismarck Pineda, 2010. "Industrial Policy in Guatemala: A Case of Policy Inertia under Changing Paradigms," Research Department Publications 4694, Inter-American Development Bank, Research Department.
    8. Herbst, Chris M., 2015. "The Rising Cost of Child Care in the United States: A Reassessment of the Evidence," IZA Discussion Papers 9072, Institute for the Study of Labor (IZA).
    9. Paulo Bastos & Julian P. Cristia, 2010. "Entry and Quality Choices in Child Care Markets," IDB Publications (Working Papers) 3029, Inter-American Development Bank.
    10. Currie, Janet & Hotz, V. Joseph, 2004. "Accidents will happen?: Unintentional childhood injuries and the effects of child care regulations," Journal of Health Economics, Elsevier, vol. 23(1), pages 25-59, January.
    11. Blau, David M., 2007. "Unintended consequences of child care regulations," Labour Economics, Elsevier, vol. 14(3), pages 513-538, June.
    12. David M. Blau, 2003. "Child Care Subsidies as Social Policy," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 1(4), pages 03-07, October.
    13. V. Joseph Hotz & Mo Xiao, 2011. "The Impact of Regulations on the Supply and Quality of Care in Child Care Markets," American Economic Review, American Economic Association, vol. 101(5), pages 1775-1805, August.
    14. repec:ces:ifodic:v:1:y:2003:i:4:p:14567866 is not listed on IDEAS
    15. Boyd-Swan, Casey & Herbst, Chris M., 2017. "Racial and Ethnic Discrimination in the Labor Market for Child Care Teachers," IZA Discussion Papers 11140, Institute for the Study of Labor (IZA).
    16. Herbst, Chris M., 2016. "The Impact of Quality Rating and Improvement Systems on Families' Child Care Choices and the Supply of Child Care Labor," IZA Discussion Papers 10383, Institute for the Study of Labor (IZA).

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