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Availability and Price of High Quality Day Care and Female Employment

  • Marianne Simonsen

    ()

    (Department of Economics, University of Aarhus, Denmark)

In this paper I analyse to what degree availability and price of high quality publicly subsidised child care affects female employment for women living in couples following maternity leave. The results show that unrestricted access to day care has a significantly positive effect on female employment. The price effect is significantly negative: An increase in the price of child care of C=1 will decrease the female employment with 0.08% corresponding to a price elasticity of -0.17. This effect prevails during the first 12 months after childbirth.

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File URL: ftp://ftp.econ.au.dk/afn/wp/05/wp05_08.pdf
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Paper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number 2005-08.

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Length: 21
Date of creation: 24 May 2005
Date of revision:
Handle: RePEc:aah:aarhec:2005-08
Contact details of provider: Web page: http://www.econ.au.dk/afn/

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  1. Nielsen, Helena Skyt & Simonsen, Marianne & Verner, Mette, 2002. "Does the Gap in Family-friendly Policies Drive the Family Gap?," Working Papers 02-19, University of Aarhus, Aarhus School of Business, Department of Economics.
  2. Jacob Mincer & Haim Ofek, 1982. "Interrupted Work Careers: Depreciation and Restoration of Human Capital," Journal of Human Resources, University of Wisconsin Press, vol. 17(1), pages 3-24.
  3. Pylkkänen, Elina & Smith, Nina, 2004. "Career Interruptions due to Parental Leave - A Comparative Study of Denmark and Sweden," Working Papers 04-1, University of Aarhus, Aarhus School of Business, Department of Economics.
  4. Tekin, Erdal, 2005. "Child care subsidy receipt, employment, and child care choices of single mothers," Economics Letters, Elsevier, vol. 89(1), pages 1-6, October.
  5. Jonah B. Gelbach, 2002. "Public Schooling for Young Children and Maternal Labor Supply," American Economic Review, American Economic Association, vol. 92(1), pages 307-322, March.
  6. Jacob Mincer & Solomon Polachek, 1974. "Family Investments in Human Capital: Earnings of Women," NBER Chapters, in: Marriage, Family, Human Capital, and Fertility, pages 76-110 National Bureau of Economic Research, Inc.
  7. Ribar, D.C., 1990. "Child Care And The Labor Supply Of Married Women: Reducted Form Evidence," Papers 9-90-9, Pennsylvania State - Department of Economics.
  8. Lechner, Michael, 1996. "An Evaluation of Public Sector Sponsored Continuous Vocational Training Programs in East Germany," Discussion Papers 539, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
  9. Lisa M. Powell, 2002. "Joint Labor Supply and Childcare Choice Decisions of Married Mothers," Journal of Human Resources, University of Wisconsin Press, vol. 37(1), pages 106-128.
  10. Christopher J. Ruhm, 2004. "Parental Employment and Child Cognitive Development," Journal of Human Resources, University of Wisconsin Press, vol. 39(1).
  11. Jean Kimmel, 1998. "Child Care Costs As A Barrier To Employment For Single And Married Mothers," The Review of Economics and Statistics, MIT Press, vol. 80(2), pages 287-299, May.
  12. Jacob Mincer & Solomon Polacheck, 1974. "Family Investments in Human Capital: Earnings of Women," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 397-431 National Bureau of Economic Research, Inc.
  13. Siv Gustafsson & Frank Stafford, 1992. "Child Care Subsidies and Labor Supply in Sweden," Journal of Human Resources, University of Wisconsin Press, vol. 27(1), pages 204-230.
  14. 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.
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