Determinants of Child Care Participation
When estimating the determinants of child care participation, the simultaneity in mothers' decision to work and in the decision to use child care is a major challenge. In this study, we provide evidence on the determinants of institutional child care use accounting for the endogeneity of mothers' labor supply by applying an instrumental variables approach. This endogeneity has been neglected in studies on this issue so far, even though the decision to use child care outside the home is strongly connected to mothers' decision to work after childbirth and vice versa. Based on the German Socio-economic Panel (GSOEP) from 1989-2006 we show that children living in Western Germany have a higher probability to attend institutional care if their mothers increase their actual weekly working time. Estimating the determining factors of child care participation without correcting for simultaneity underestimates the influence of maternal working time by more than a half.
|Date of creation:||2007|
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- C. Katharina Spieß & Felix Büchel & Joachim R. Frick, 2002. "Kinderbetreuung in West- und Ostdeutschland: sozioökonomischer Hintergrund entscheidend," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 69(31), pages 518-524.
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- Peter Haan, 2005. "State Dependence and Female Labor Supply in Germany: The Extensive and the Intensive Margin," Discussion Papers of DIW Berlin 538, DIW Berlin, German Institute for Economic Research.
- Philip K. Robins & Charles Michalopoulos, 2002. "Employment and child-care choices of single-parent families in Canada and the United States," Journal of Population Economics, Springer, vol. 15(3), pages 465-493.
- Djurdjevic, Dragana, 2005. "Women's Labour Supply after Childbirth: An Empirical Analysis for Switzerland," Darmstadt Discussion Papers in Economics 37208, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute of Economics (VWL).
- Stefan Bender & Annette Kohlmann & Stefan Lang, 2003. "Women, work, and motherhood: changing employment penalties for motherhood in West Germany after 1945 - a comparative analysis of cohorts born in 1934-1971," MPIDR Working Papers WP-2003-006, Max Planck Institute for Demographic Research, Rostock, Germany.
- Johannes Geyer & Viktor Steiner, 2007.
"Short-Run and Long-Term Effects of Childbirth on Mothers' Employment and Working Hours across Institutional Regimes: An Empirical Analysis Based on the European Community Household Panel,"
Discussion Papers of DIW Berlin
682, DIW Berlin, German Institute for Economic Research.
- Geyer, Johannes & Steiner, Viktor, 2007. "Short-Run and Long-Term Effects of Childbirth on Mothers’ Employment and Working Hours Across Institutional Regimes: An Empirical Analysis Based on the European Community Household Panel," IZA Discussion Papers 2693, Institute for the Study of Labor (IZA).
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