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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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    Cited by:

    1. Herbst, Chris M., 2018. "The rising cost of child care in the United States: A reassessment of the evidence," Economics of Education Review, Elsevier, vol. 64(C), pages 13-30.
    2. Samuel Berlinski & Maria Marta Ferreyra & Luca Flabbi & Juan David Martin, 2020. "Child Care Markets, Parental Labor Supply, and Child Development," CHILD Working Papers Series 73 JEL Classification:, Centre for Household, Income, Labour and Demographic Economics (CHILD) - CCA.
    3. Susan Feng Lu, 2012. "Multitasking, Information Disclosure, and Product Quality: Evidence from Nursing Homes," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 21(3), pages 673-705, September.
    4. 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(04), pages 03-07, October.
    5. 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.
    6. 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.
    7. Randal Heeb & M. Rebecca Kilburn, 2004. "The Effects of State Regulations on Childcare Prices and Choices," Working Papers 137, RAND Corporation.
    8. 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.
    9. Blau, David & Currie, Janet, 2006. "Pre-School, Day Care, and After-School Care: Who's Minding the Kids?," Handbook of the Economics of Education, in: Erik Hanushek & F. Welch (ed.), Handbook of the Economics of Education, edition 1, volume 2, chapter 20, pages 1163-1278, Elsevier.
    10. 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.
    11. Paulo Bastos & Julian Cristia, 2010. "Entry and Quality Choices in Child Care Markets," Research Department Publications 4696, Inter-American Development Bank, Research Department.
    12. Herbst, Chris M., 2022. "Child Care in the United States: Markets, Policy, and Evidence," IZA Discussion Papers 15547, Institute of Labor Economics (IZA).
    13. Chris M. Herbst, 2023. "Child Care In The United States: Markets, Policy, And Evidence," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 42(1), pages 255-304, January.
    14. Ali, Umair & Herbst, Chris M. & Makridis, Christos A., 2021. "Minimum Quality Regulations and the Demand for Child Care Labor," IZA Discussion Papers 14684, Institute of Labor Economics (IZA).
    15. Herbst, Chris M., 2015. "The Rising Cost of Child Care in the United States: A Reassessment of the Evidence," IZA Discussion Papers 9072, Institute of Labor Economics (IZA).
    16. 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.
    17. Blau, David M., 2007. "Unintended consequences of child care regulations," Labour Economics, Elsevier, vol. 14(3), pages 513-538, June.
    18. 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.
    19. 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.
    20. Herbst, Chris M., 2018. "The impact of quality rating and improvement systems on families’ child care choices and the supply of child care labor," Labour Economics, Elsevier, vol. 54(C), pages 172-190.
    21. repec:ces:ifodic:v:1:y:2003:i:4:p:14567866 is not listed on IDEAS
    22. Boyd-Swan, Casey & Herbst, Chris M., 2017. "Racial and Ethnic Discrimination in the Labor Market for Child Care Teachers," IZA Discussion Papers 11140, Institute of Labor Economics (IZA).
    23. 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 of Labor Economics (IZA).

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