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Part-Time Employment Traps and Childcare Policy

Author

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  • Booth, Alison L
  • Coles, Melvyn G

Abstract

We model educational investment, wages and employment status (full-time, part-time or non-participation) in a frictional world in which heterogeneous workers have different productivities, both at home and in the workplace. We investigate the degree to which there might be under-employment and distortions in human capital investment, and we then show how childcare policy can be used not only to correct the ex post under-participation problem but also to provide efficient incentives to invest optimally ex ante in education.

Suggested Citation

  • Booth, Alison L & Coles, Melvyn G, 2004. "Part-Time Employment Traps and Childcare Policy," CEPR Discussion Papers 4357, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:4357
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    More about this item

    Keywords

    childcare; education; full-time; market failure; part-time;

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets

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