The Availability of Child Care Centers, Perceived Search Costs and Parental Life Satisfaction
The supply of formal childcare has expanded in many developed countries. There is ambiguity, however, in the theory that the entry of care providers increases consumers’ surplus and the welfare of households in a market with differentiated services, such as childcare. This study empirically investigates how perceived search costs and parental life satisfaction change when actual childcare availability is altered. It exploits the new panel data from Australia on the number of center-based childcare places per 100 children within a household’s residential area. The results show that an increase in the availability of centerbased childcare is associated with a decrease in perceived difficulty in finding ‘good quality’ childcare, as well as an improvement in mothers’ satisfaction with the increased availability of free time. These findings imply that the local availability of center-based childcare has enhanced the subjective well-being of parents.
|Date of creation:||Sep 2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +61 2 6125 3807
Fax: +61 2 6125 0744
Web page: http://rse.anu.edu.au/cepr.php
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Michael Baker & Jonathan Gruber & Kevin Milligan, 2006.
"Universal Childcare, Maternal Labor Supply, and Family Well-Being,"
- Michael Baker & Jonathan Gruber & Kevin Milligan, 2008. "Universal Child Care, Maternal Labor Supply, and Family Well-Being," Journal of Political Economy, University of Chicago Press, vol. 116(4), pages 709-745, 08.
- Michael Baker & Jonathan Gruber & Kevin Milligan, 2005. "Universal Childcare, Maternal Labor Supply, and Family Well-Being," NBER Working Papers 11832, National Bureau of Economic Research, Inc.
- Guyonne Kalb & Wang-Sheng Lee, 2008.
"Childcare Use And Parents' Labour Supply In Australia ,"
Australian Economic Papers,
Wiley Blackwell, vol. 47(3), pages 272-295, 09.
- Guyonne Kalb & Wang-Sheng Lee, 2007. "Childcare Use and Parents’ Labour Supply in Australia," Melbourne Institute Working Paper Series wp2007n13, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
- David M. Blau, 1997. "The Production of Quality in Child Care Centers," Journal of Human Resources, University of Wisconsin Press, vol. 32(2), pages 354-387.
- Blau, David & Currie, Janet, 2006.
"Pre-School, Day Care, and After-School Care: Who's Minding the Kids?,"
Handbook of the Economics of Education,
- David Blau & Janet Currie, 2004. "Preschool, Day Care, and Afterschool Care: Who's Minding the Kids?," NBER Working Papers 10670, National Bureau of Economic Research, Inc.
- John G. Lynch , Jr. & Dan Ariely, 2000. "Wine Online: Search Costs Affect Competition on Price, Quality, and Distribution," Marketing Science, INFORMS, vol. 19(1), pages 83-103, April.
- Daniela Del Boca & Daniela Vuri, 2007.
"The mismatch between employment and child care in Italy: the impact of rationing,"
Journal of Population Economics,
Springer, vol. 20(4), pages 805-832, October.
- Daniela Del Boca & Daniela Vuri, 2006. "The Mismatch between Employment and Child Care in Italy: the Impact of Rationing," Carlo Alberto Notebooks 31, Collegio Carlo Alberto.
- Daniela Del Boca & Daniela Vuri, 2006. "The Mismatch between Employment and Child Care in Italy: the Impact of Rationing," CHILD Working Papers wp08_06, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
- Patricia M. Anderson & Philip B. Levine, 1999.
"Child Care and Mothers' Employment Decisions,"
NBER Working Papers
7058, National Bureau of Economic Research, Inc.
- Greenhut, M L, et al, 1985. "An Anomaly in the Service Industry: The Effect of Entry on Fees," Economic Journal, Royal Economic Society, vol. 95(377), pages 169-77, March.
- 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.
- James R. Walker, 1992. "New Evidence on the Supply of Child Care: A Statistical Portrait of Family Providers and an Analysis of Their Fees," Journal of Human Resources, University of Wisconsin Press, vol. 27(1), pages 40-69.
- Francis Teal, 1992.
"The Use and Cost of Child Care in Australia,"
Australian Economic Review,
The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 25(1), pages 3-14.
- Susanna Loeb & Margaret Bridges & Bruce Fuller & Russ Rumberger & Daphna Bassok, 2005.
"How Much is Too Much? The Influence of Preschool Centers on Children's Social and Cognitive Development,"
NBER Working Papers
11812, National Bureau of Economic Research, Inc.
- Loeb, Susanna & Bridges, Margaret & Bassok, Daphna & Fuller, Bruce & Rumberger, Russell W., 2007. "How much is too much? The influence of preschool centers on children's social and cognitive development," Economics of Education Review, Elsevier, vol. 26(1), pages 52-66, February.
- Samuel Berlinski & Sebastian Galiani, 2004.
"The effect of a large expansion of pre-primary school facilities on preschool attendance and maternal employment,"
IFS Working Papers
W04/30, Institute for Fiscal Studies.
- Berlinski, Samuel & Galiani, Sebastian, 2007. "The effect of a large expansion of pre-primary school facilities on preschool attendance and maternal employment," Labour Economics, Elsevier, vol. 14(3), pages 665-680, June.
- Sebastian Galiani & Samuel Berlinski, 2005. "The Effect of a Large Expansion of Pre-Primary School Facilities on Preschool Attendance and Maternal Employment," Working Papers 77, Universidad de San Andres, Departamento de Economia, revised Aug 2005.
- Anu Rammohan & Stephen Whelan, 2007. "The Impact Of Childcare Costs On The Full-Time/Part-Time Employment Decisions Of Australian Mothers," Australian Economic Papers, Wiley Blackwell, vol. 46(2), pages 152-169, 06.
- Elizabeth Cascio, 2006. "Public Preschool and Maternal Labor Supply: Evidence from the Introduction of Kindergartens into American Public Schools," NBER Working Papers 12179, National Bureau of Economic Research, Inc.
- Rammohan, Anu, 2004. "Child care and female employment decisions: A theoretical note," Working Papers 3, University of Sydney, School of Economics.
- Deborah Cobb-Clark & Amy Liu & Deborah Mitchell, 1999. "Reassessing the Role of Child Care Costs in the Work and Care Decisions of Australian Families," CEPR Discussion Papers 409, Centre for Economic Policy Research, Research School of Economics, Australian National University.
- Susanna Loeb & Bruce Fuller & Sharon Lynn Kagan & Bidemi Carrol & Judith Carroll, 2003. "Child Care in Poor Communities: Early Learning Effects of Type, Quality, and Stability," NBER Working Papers 9954, National Bureau of Economic Research, Inc.
- David Blau, 2003.
"Child Care Subsidy Programs,"
in: Means-Tested Transfer Programs in the United States, pages 443-516
National Bureau of Economic Research, Inc.
- Mark A. Satterthwaite, 1979. "Consumer Information, Equilibrium Industry Price, and the Number of Sellers," Bell Journal of Economics, The RAND Corporation, vol. 10(2), pages 483-502, Autumn.
- Denise Doiron & Guyonne Kalb, 2004.
"Demands for Childcare and Household Labour Supply in Australia,"
Melbourne Institute Working Paper Series
wp2004n06, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
- Denise Doiron & Guyonne Kalb, 2005. "Demands for Child Care and Household Labour Supply in Australia," The Economic Record, The Economic Society of Australia, vol. 81(254), pages 215-236, 09.
- Stephen Whelan & Anu Rammohan, 2005. "Child Care and Female Decisions," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 8(2), pages 203-225, June.
- Curtis Eaton, B. & Lipsey, Richard G., 1989. "Product differentiation," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 12, pages 723-768 Elsevier.
- Silvia Pezzini, 2005. "The Effect of Women's Rights on Women's Welfare: Evidence from a Natural Experiment," Economic Journal, Royal Economic Society, vol. 115(502), pages C208-C227, 03.
- Naci Mocan, 2007. "Can consumers detect lemons? An empirical analysis of information asymmetry in the market for child care," Journal of Population Economics, Springer, vol. 20(4), pages 743-780, October.
- 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.
- 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.
When requesting a correction, please mention this item's handle: RePEc:auu:dpaper:620. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.