IDEAS home Printed from https://ideas.repec.org/p/wap/wpaper/2008.html
   My bibliography  Save this paper

The U.S. Child Care Crisis: Facts, Causes, and Policies

Author

Listed:
  • So Kubota

    () (Faculty of Political Science and Economics, Waseda University)

Abstract

Why does the United States lack affordable child care? I examine the long-term trend of the child care market and document a sharp price increase since the late 1990s. I show that a massive expansion of federal and state means-tested child care subsidies, which were intended to stimulate the market, instead crowded out child care supply. The evidence suggests that the subsidies discouraged home-based child care suppliers who were also working mothers. A simple calibrated equilibrium model captures the rising price, which eventually caused the female employment rate to decline. An effective policy should capitalize on the home-based care business.

Suggested Citation

  • So Kubota, 2020. "The U.S. Child Care Crisis: Facts, Causes, and Policies," Working Papers 2008, Waseda University, Faculty of Political Science and Economics.
  • Handle: RePEc:wap:wpaper:2008
    as

    Download full text from publisher

    File URL: https://www.waseda.jp/fpse/winpec/assets/uploads/2020/07/E2008_version.pdf
    File Function: First version,
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Chris M. Herbst, 2017. "Universal Child Care, Maternal Employment, and Children’s Long-Run Outcomes: Evidence from the US Lanham Act of 1940," Journal of Labor Economics, University of Chicago Press, vol. 35(2), pages 519-564.
    2. Blau, Francine D. & Kahn, Lawrence M., 2013. "Female Labor Supply: Why is the US Falling Behind?," IZA Discussion Papers 7140, Institute of Labor Economics (IZA).
    3. Francine D. Blau & Lawrence M. Kahn, 2013. "Female Labor Supply: Why Is the United States Falling Behind?," American Economic Review, American Economic Association, vol. 103(3), pages 251-256, May.
    4. Bauernschuster, Stefan & Schlotter, Martin, 2015. "Public child care and mothers' labor supply—Evidence from two quasi-experiments," Journal of Public Economics, Elsevier, vol. 123(C), pages 1-16.
    5. Rodgers, Luke P., 2018. "Give credit where? The incidence of child care tax credits," Journal of Urban Economics, Elsevier, vol. 108(C), pages 51-71.
    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. Bustelo, Monserrat & Flabbi, Luca & Piras, Claudia & Tejada, Mauricio, 2019. "Female Labor Force Participation, Labor Market Dynamic and Growth in LAC," IDB Publications (Working Papers) 9420, Inter-American Development Bank.
    2. Libertad González Luna & Lidia Farré, 2017. "The effects of paternity leave on fertility and labor market outcomes," Economics Working Papers 1572, Department of Economics and Business, Universitat Pompeu Fabra.
    3. Cortes, Patricia & Pan, Jessica, 2016. "Prevalence of Long Hours and Skilled Women's Occupational Choices," IZA Discussion Papers 10225, Institute of Labor Economics (IZA).
    4. Marianne Bertrand, 2018. "Coase Lecture – The Glass Ceiling," Economica, London School of Economics and Political Science, vol. 85(338), pages 205-231, April.
    5. Mehrotra, Santosh & Parida, Jajati K., 2017. "Why is the Labour Force Participation of Women Declining in India?," World Development, Elsevier, vol. 98(C), pages 360-380.
    6. Berthelon, Matias & Kruger, Diana & Lauer, Catalina & Tiberti, Luca & Zamora, Carlos, 2020. "Longer School Schedules, Childcare and the Quality of Mothers’ Employment: Evidence from School Reform in Chile," GLO Discussion Paper Series 525, Global Labor Organization (GLO).
    7. Francine D. Blau & Anne E. Winkler, 2017. "Women, Work, and Family," NBER Working Papers 23644, National Bureau of Economic Research, Inc.
    8. Iris Delgado & Baltica Cabieses & Mauricio Apablaza & Carla Castillo & Ximena Aguilera & Isabel Matute & Manuel Najera & Juan M Pericàs & Joan Benach, 2019. "Evaluation of the effectiveness and equity of the maternity protection reform in Chile from 2000 to 2015," PLOS ONE, Public Library of Science, vol. 14(9), pages 1-16, September.
    9. Balafoutas, Loukas & Davis, Brent J. & Sutter, Matthias, 2016. "Affirmative action or just discrimination? A study on the endogenous emergence of quotas," Journal of Economic Behavior & Organization, Elsevier, vol. 127(C), pages 87-98.
    10. Costa-Font, Joan & Flèche, Sarah, 2020. "Child sleep and mother labour market outcomes," Journal of Health Economics, Elsevier, vol. 69(C).
    11. Gallen, Yana & Lesner, Rune V. & Vejlin, Rune, 2019. "The labor market gender gap in Denmark: Sorting out the past 30 years," Labour Economics, Elsevier, vol. 56(C), pages 58-67.
    12. Hare, Denise, 2016. "What accounts for the decline in labor force participation among married women in urban China, 1991–2011?," China Economic Review, Elsevier, vol. 38(C), pages 251-266.
    13. Angela Carollo & Anna Oksuzyan & Sven Drefahl & Carlo Giovanni Camarda & Linda Juel Ahrenfeldt & Kaare Christensen & Alyson van Raalte, 2019. "Is the age difference between partners related to women's earnings?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 41(15), pages 425-460.
    14. Grigoli, Francesco & Koczan, Zsoka & Topalova, Petia, 2020. "Automation and labor force participation in advanced economies: Macro and micro evidence," European Economic Review, Elsevier, vol. 126(C).
    15. Katharine G. Abraham & Melissa S. Kearney, 2020. "Explaining the Decline in the US Employment-to-Population Ratio: A Review of the Evidence," Journal of Economic Literature, American Economic Association, vol. 58(3), pages 585-643, September.
    16. Bick, Alexander & Brüggemann, Bettina & Fuchs-Schündeln, Nicola & Paule-Paludkiewicz, Hannah, 2019. "Long-term changes in married couples' labor supply and taxes: Evidence from the US and Europe since the 1980s," Journal of International Economics, Elsevier, vol. 118(C), pages 44-62.
    17. Claudia Olivetti & Barbara Petrongolo, 2017. "The Economic Consequences of Family Policies: Lessons from a Century of Legislation in High-Income Countries," Journal of Economic Perspectives, American Economic Association, vol. 31(1), pages 205-230, Winter.
    18. Liat Raz-Yurovich, 2014. "A Transaction Cost Approach to Outsourcing by Households," Population and Development Review, The Population Council, Inc., vol. 40(2), pages 293-309, June.
    19. Ludovica Gambaro & Guido Neidhöfer & C. Katharina Spieß, 2019. "The Effect of Early Childhood Education and Care Services on the Social Integration of Refugee Families," Discussion Papers of DIW Berlin 1828, DIW Berlin, German Institute for Economic Research.
    20. Arango-Thomas, Luis Eduardo & Castellani, Francesca & Lora-Torres, Eduardo (ed.), 2016. "Desempleo femenino en Colombia," Books, Banco de la Republica de Colombia, number 2016a-12, June.

    More about this item

    Keywords

    Child care market; Female labor supply; Child care subsidies;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

    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:wap:wpaper:2008. See general information about how to correct material in RePEc.

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

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.