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

  • David M. Blau

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

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.

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File URL: http://hdl.handle.net/10.1002/pam.10140
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Article provided by John Wiley & Sons, Ltd. in its journal Journal of Policy Analysis and Management.

Volume (Year): 22 (2003)
Issue (Month): 3 ()
Pages: 443-465

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Handle: RePEc:wly:jpamgt:v:22:y:2003:i:3:p:443-465
Contact details of provider: Web page: http://www3.interscience.wiley.com/journal/34787/home

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  1. 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.
  2. Chipty, Tasneem, 1995. "Economic Effects of Quality Regulations in the Day-Care Industry," American Economic Review, American Economic Association, vol. 85(2), pages 419-24, May.
  3. 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.
  4. 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.
  5. 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.
  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. 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.
  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. Blau, David M, 1993. "The Supply of Child Care Labor," Journal of Labor Economics, University of Chicago Press, vol. 11(2), pages 324-47, April.
  10. Marcia Meyers & Theresa Heintze & Douglas Wolf, 2002. "Child care subsidies and the employment of welfare recipients," Demography, Springer, vol. 39(1), pages 165-179, February.
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