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Labour Supply and Childcare for British Mothers in Two-Parent Families: A Structural Approach

  • Parera-Nicolau, Antonia

    ()

    (University of the Balearic Islands)

  • Mumford, Karen A.

    ()

    (University of York)

We develop and estimate a structural model of labour supply for British two parent families, taking explicit account of the importance of childcare related variables. We find working mothers do not increase their working hours when hourly wages increase, indeed, they are more likely to reduce their hours. The major inducement for working mothers to increase their working hours, that we find, is the provision of high quality formal childcare. Implying that government policy aiming at increasing working hours amongst British mothers of pre-school children may need to focus on the quality as well as the quantity of formal child care that is available.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1908.

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Length: 42 pages
Date of creation: Dec 2005
Date of revision:
Handle: RePEc:iza:izadps:dp1908
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  1. M. Keane & R. Mofitt, 1995. "A Structural Model of Multiple Welfare Program Participation and Labor Supply," Working Papers 95-4, Brown University, Department of Economics.
  2. van Soest, A.H.O. & Kooreman, P. & Kapteyn, A.J., 1990. "Coherency and regularity of demand systems with equality and inequality constraints," Discussion Paper 1990-1, Tilburg University, Center for Economic Research.
  3. Bruce D. Meyer & Dan T. Rosenbaum, 2001. "Welfare, the Earned Income Tax Credit, and the Labor Supply of Single Mothers," The Quarterly Journal of Economics, Oxford University Press, vol. 116(3), pages 1063-1114.
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  6. Rebecca M. Blank, 2001. "Declining caseloads/increased work: what can we conclude about the effects of welfare reform?," Economic Policy Review, Federal Reserve Bank of New York, issue Sep, pages 25-36.
  7. John W. Budd & Karen Mumford, . "Trade Unions and Family Friendly Policies in Britain," Working Papers 0302, Human Resources and Labor Studies, University of Minnesota (Twin Cities Campus).
  8. Blundell, Richard & Macurdy, Thomas, 1999. "Labor supply: A review of alternative approaches," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 27, pages 1559-1695 Elsevier.
  9. Ribar, D.C., 1991. "A Structural Model of Child Care and the Labor Supply of Married Women," Papers 1-91-1, Pennsylvania State - Department of Economics.
  10. Pagan,Adrian & Ullah,Aman, 1999. "Nonparametric Econometrics," Cambridge Books, Cambridge University Press, number 9780521355643, November.
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  12. Hilary Hoynes & Richard Blundell, 2001. "Has "In-Work" Benefit Reform Helped the Labour Market?," NBER Working Papers 8546, National Bureau of Economic Research, Inc.
  13. David T. Ellwood, 2000. "Anti-Poverty Policy for Families in the Next Century: From Welfare to Work--and Worries," Journal of Economic Perspectives, American Economic Association, vol. 14(1), pages 187-198, Winter.
  14. Richard Blundell & Alan Duncan & Julian McCrae & Costas Meghir, 2000. "The labour market impact of the working families’ tax credit," Fiscal Studies, Institute for Fiscal Studies, vol. 21(1), pages 75-103, March.
  15. Maria Concetta Chiuri, . "The Unitary vs. the Collective Model of Household Labour Supply with Child Care: An Empirical Test on a Sample of Italian Households," Discussion Papers 97/12, Department of Economics, University of York.
  16. Alan Duncan & Gillian Paull & Jayne Taylor, 2001. "Price and quality in the UK childcare market," IFS Working Papers W01/14, Institute for Fiscal Studies.
  17. Arthur van Soest, 1995. "Structural Models of Family Labor Supply: A Discrete Choice Approach," Journal of Human Resources, University of Wisconsin Press, vol. 30(1), pages 63-88.
  18. Viitanen, Tarja K & Arnaud Chevalier, 2003. "The Supply of Childcare in Britain: Do Mothers Queue for Childcare?," Royal Economic Society Annual Conference 2003 211, Royal Economic Society.
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