IDEAS home Printed from https://ideas.repec.org/p/diw/diwsop/diw_sp1205.html
   My bibliography  Save this paper

The Cost of Fair Pay: How Child Care Work Wages Affect Formal Child Care Hours, Informal Child Care Hours, and Employment Hours

Author

Listed:
  • Verena Löffler

Abstract

The debate on the effects of child care policies on household and individual behavior is substantial but lacks a discussion of the unintended consequences of rising wages in the child care work sector. To address this gap in the debate, the relation between rising pay and formal child care hours, informal child care hours, and employment hours is analyzed empirically with a case study on child care in Germany between 2012 and 2019. Among other findings, the evidence demonstrates that the consumption of formal child care hours of middle- and high-income households in eastern Germany correlates negatively with child care work wages, indicating price elasticity.

Suggested Citation

  • Verena Löffler, 2024. "The Cost of Fair Pay: How Child Care Work Wages Affect Formal Child Care Hours, Informal Child Care Hours, and Employment Hours," SOEPpapers on Multidisciplinary Panel Data Research 1205, DIW Berlin, The German Socio-Economic Panel (SOEP).
    • Handle: RePEc:diw:diwsop:diw_sp1205
    as

    Download full text from publisher

    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.896754.de/diw_sp1205.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Busse, Anna & Gathmann, Christina, 2020. "Free daycare policies, family choices and child development," Journal of Economic Behavior & Organization, Elsevier, vol. 179(C), pages 240-260.
    2. Busse, Anna & Gathmann, Christina, 2018. "Free Daycare and its Effects on Children and their Families," IZA Discussion Papers 11269, Institute of Labor Economics (IZA).
    3. William Baumol, 1996. "Children of performing arts, the economic dilemma: The climbing costs of health care and education," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 20(3), pages 183-206, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Huebener, Mathias & Pape, Astrid & Spiess, C. Katharina, 2020. "Parental labour supply responses to the abolition of day care fees," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 510-543.
    2. Eric Nauenberg, 2014. "Changing healthcare capital-to-labor ratios: evidence and implications for bending the cost curve in Canada and beyond," International Journal of Health Economics and Management, Springer, vol. 14(4), pages 339-353, December.
    3. Eric Nauenberg, 2014. "Changing Healthcare Capital-To-Labor Ratios: Evidence and Implications for Bending the Cost Curve in Canada and Beyond," Working Papers 140002, Canadian Centre for Health Economics, revised Jul 2014.
    4. Mathias Huebener & Sevrin Waights & C. Katharina Spiess & Nico A. Siegel & Gert G. Wagner, 2021. "Parental well-being in times of Covid-19 in Germany," Review of Economics of the Household, Springer, vol. 19(1), pages 91-122, March.
    5. BOUSSELIN Audrey, 2019. "Expanding access to universal childcare: Effects on childcare arrangements and maternal employment," LISER Working Paper Series 2019-11, Luxembourg Institute of Socio-Economic Research (LISER).
    6. Paetzold, Jörg, 2012. "The Convergence of Welfare State Indicators in Europe: Evidence from Panel Data," Working Papers in Economics 2012-4, University of Salzburg.
    7. Annie Tubadji & Peter Nijkamp, 2018. "Revisiting the Balassa–Samuelson effect: International tourism and cultural proximity," Tourism Economics, , vol. 24(8), pages 915-944, December.
    8. Balázs Égert & László Halpern & Ronald MacDonald, 2006. "Equilibrium Exchange Rates in Transition Economies: Taking Stock of the Issues," Journal of Economic Surveys, Wiley Blackwell, vol. 20(2), pages 257-324, April.
    9. Siddhartha Paul Tiwari, 2022. "Re-emergence of Asia in the New Industrial Era," Technium Social Sciences Journal, Technium Science, vol. 29(1), pages 471-480, March.
    10. Rachel Lara Cohen & Carol Wolkowitz, 2018. "The Feminization of Body Work," Gender, Work and Organization, Wiley Blackwell, vol. 25(1), pages 42-62, January.
    11. Eric Schuss & Mohammed Azaouagh, 2021. "Combining parenthood and work: transmission channels and heterogeneous returns to early public childcare," Review of Economics of the Household, Springer, vol. 19(3), pages 641-676, September.
    12. Torben Andersen, 2007. "The Scandinavian Model – Prospects and Challenges," CESifo Working Paper Series 1903, CESifo.
    13. Malte Sandner & Stephan L. Thomsen & Libertad González Luna, 2020. "Preventing child maltreatment: Beneficial side effects of public childcare provision," Economics Working Papers 1744, Department of Economics and Business, Universitat Pompeu Fabra.
    14. Köppl-Turyna, Monika & Graf, Nikolaus, 2023. "Kinderbetreuung und Vereinbarkeit im internationalen Vergleich: Update des EcoAustria Scoreboard-Indikators," Policy Notes 54, EcoAustria – Institute for Economic Research.
    15. repec:thr:techub:10029:y:2022:i:1:p:471-480 is not listed on IDEAS
    16. Auffenberg, Jennie & Kittel, Bernhard, 2015. "Negotiating reforms in the public services: Trajectories of new public management policies in the Swedish and French police forces," TranState Working Papers 188, University of Bremen, Collaborative Research Center 597: Transformations of the State.
    17. Sandner, Malte & Thomsen, Stephan L., 2018. "The Effects of Universal Public Childcare Provision on Cases of Child Neglect and Abuse," IZA Discussion Papers 11687, Institute of Labor Economics (IZA).
    18. Frederick van der Ploeg, 2007. "Sustainable Social Spending and Stagnant Public Services: Baumol's Cost Disease Revisited," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 63(4), pages 519-547, December.
    19. repec:onb:oenbwp:y::i:106:b:1 is not listed on IDEAS
    20. Oliver Fritz & Peter Mayerhofer & Reinhard Haller & Gerhard Streicher & Florian Bachner & Herwig Ostermann, 2013. "Die regionalwirtschaftlichen Effekte der österreichischen Krankenanstalten," WIFO Studies, WIFO, number 46672, February.
    21. Claudio De Vincenti, 2007. "‘Baumol'S Disease’, Production Externalities And Productivity Effects Of Intersectoral Transfers," Metroeconomica, Wiley Blackwell, vol. 58(3), pages 396-412, July.
    22. Frederick Van der Ploeg, 2006. "Sustainable Social Spending in a Greying Economy with Stagnant Public Services: Baumol’s Cost Disease Revisited," CESifo Working Paper Series 1822, CESifo.

    More about this item

    Keywords

    care work wage; early childhood education and care; informal child care; employment hours;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:diw:diwsop:diw_sp1205. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bibliothek (email available below). General contact details of provider: https://edirc.repec.org/data/sodiwde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.