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Purchased Child Care, Optimal Family Size and Mother's Employment

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  • Ermisch, John F

Abstract

The paper develops a model of family size decisions in which couples choose explicitly a combination of mother's time and purchased child care (e.g. childminders, nannies) for the care and rearing of children. The theoretical model implies that the impact of the mother's wage on her completed fertility varies with the market price of child care, and that this effect increases (becoming less negative or more positive) with the level of her wage. Econometric analysis of British micro-data confirms the main predictions of the model.

Suggested Citation

  • Ermisch, John F, 1988. "Purchased Child Care, Optimal Family Size and Mother's Employment," CEPR Discussion Papers 238, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:238
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Annette Kohlmann, 2002. "Fertility intentions in a cross-cultural view: the value of children reconsidered," MPIDR Working Papers WP-2002-002, Max Planck Institute for Demographic Research, Rostock, Germany.
    2. Ch. LAUER & A.M. WEBER, 2003. "Employment of Mothers after Childbirth : A French-German Comparison," Working Papers ERMES 0309, ERMES, University Paris 2.
    3. Katja Köppen, 2006. "Second births in western Germany and France," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 14(14), pages 295-330, April.
    4. Tom Kornstad & Thor Thoresen, 2007. "A discrete choice model for labor supply and childcare," Journal of Population Economics, Springer;European Society for Population Economics, vol. 20(4), pages 781-803, October.
    5. Mörk, Eva & Sjögren, Anna & Svalelryd, Helena, 2008. "Cheaper child care, more children," Working Paper Series 2008:29, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    6. Tomas Kögel, 2006. "An explanation of the positive correlation between fertility and female employment across Western European countries," Discussion Paper Series 2006_11, Department of Economics, Loughborough University.
    7. Cordula Zabel, 2006. "Employment experience and first birth in Great Britain," MPIDR Working Papers WP-2006-029, Max Planck Institute for Demographic Research, Rostock, Germany.
    8. Henry Ohlsson & Michael Lundholm, 2002. "Who takes care of the children? The quantity-quality model revisited," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(3), pages 455-461.
    9. Tomas Kögel, 2006. "Swedish Family Policy, Fertility and Female Wages," Discussion Paper Series 2006_7, Department of Economics, Loughborough University.
    10. Kravdal,O., 2001. "The high fertility of college educated women in Norway : an artefact of the 'piecemeal approach'," Memorandum 22/2001, Oslo University, Department of Economics.
    11. Pedro Mira & Namkee Ahn, 2002. "A note on the changing relationship between fertility and female employment rates in developed countries," Journal of Population Economics, Springer;European Society for Population Economics, pages 667-682.
    12. Katja Köppen, 2004. "The compatibility between work and family life – an empirical study of second birth risks in West Germany and France," MPIDR Working Papers WP-2004-015, Max Planck Institute for Demographic Research, Rostock, Germany.
    13. Grogan, L., 2002. "What Caused the Post-Transition Fertility Decline in Central and Eastern Europe and the Former Soviet Union?," Working Papers 2002-5, University of Guelph, Department of Economics and Finance.
    14. Øystein Kravdal, 2001. "The High Fertility of College Educated Women in Norway," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 5(6), pages 187-216, December.
    15. Louise Grogan, 2006. "An Economic Examination of the Post-Transition Fertility Decline in Russia," Post-Communist Economies, Taylor & Francis Journals, vol. 18(4), pages 363-397.
    16. Iulie Aslaksen & Charlotte Koren & Marianne Stokstad, 2000. "The Effect of Child Care Subsidies: A Critique of the Rosen Model," Feminist Economics, Taylor & Francis Journals, vol. 6(1), pages 95-103.
    17. Schrage, Andrea, 2007. "Low Fertility of Highly Educated Women: The Impact of Child Care Infrastructure," University of Regensburg Working Papers in Business, Economics and Management Information Systems 421, University of Regensburg, Department of Economics.
    18. Maria Gutiérrez-Domènech, 2008. "The impact of the labour market on the timing of marriage and births in Spain," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(1), pages 83-110, January.
    19. Alessandro Cigno & Anna Pettini, 1999. "Taxing Family Size and Subsidising Child-specific Commodities? Optimal Fiscal Treatment of Households with Endogenous Fertility," CESifo Working Paper Series 198, CESifo Group Munich.

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    Keywords

    Children; Fertility; Labour Supply; Working Women;

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