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Availability and Price of High Quality Day Care and Female Employment

Author

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  • Marianne Simonsen

    (Department of Economics, University of Aarhus, Denmark)

Abstract
In this paper I analyse to what degree availability and price of high quality publicly subsidised child care affects female employment for women living in couples following maternity leave. The results show that unrestricted access to day care has a significantly positive effect on female employment. The price effect is significantly negative: An increase in the price of child care of C=1 will decrease the female employment with 0.08% corresponding to a price elasticity of -0.17. This effect prevails during the first 12 months after childbirth.

Suggested Citation

  • Marianne Simonsen, 2005. "Availability and Price of High Quality Day Care and Female Employment," Economics Working Papers 2005-08, Department of Economics and Business Economics, Aarhus University.
    • Handle: RePEc:aah:aarhec:2005-08
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    File URL: https://repec.econ.au.dk/repec/afn/wp/05/wp05_08.pdf
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    References listed on IDEAS

    as
    1. Tekin, Erdal, 2005. "Child care subsidy receipt, employment, and child care choices of single mothers," Economics Letters, Elsevier, vol. 89(1), pages 1-6, October.
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    6. Helena Skyt Nielsen & Marianne Simonsen & Mette Verner, 2004. "Does the Gap in Family‐friendly Policies Drive the Family Gap?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(4), pages 721-744, December.
    7. Elina Pylkkänen & Nina Smith, 2003. "Career Interruptions Due to Parental Leave: A Comparative Study of Denmark and Sweden," OECD Social, Employment and Migration Working Papers 1, OECD Publishing.
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    13. Jean Kimmel, 1998. "Child Care Costs As A Barrier To Employment For Single And Married Mothers," The Review of Economics and Statistics, MIT Press, vol. 80(2), pages 287-299, May.
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    Cited by:

    1. Julia Bock-Schappelwein & Rainer Eppel & Ulrike Mühlberger, 2009. "Sozialpolitik als Produktivkraft," WIFO Studies, WIFO, number 35602.
    2. Zierow, Larissa, 2017. "Regulating Child Care Markets. Center-based Care vs. Family Day-Care in Germany," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168052, Verein für Socialpolitik / German Economic Association.
    3. Datta Gupta, Nabanita & Simonsen, Marianne, 2010. "Non-cognitive child outcomes and universal high quality child care," Journal of Public Economics, Elsevier, vol. 94(1-2), pages 30-43, February.
    4. Nabanita Datta Gupta & Nina Smith & Mette Verner, 2008. "PERSPECTIVE ARTICLE: The impact of Nordic countries’ family friendly policies on employment, wages, and children," Review of Economics of the Household, Springer, vol. 6(1), pages 65-89, March.
    5. Marianne Simonsen, 2010. "Price of High‐quality Daycare and Female Employment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 112(3), pages 570-594, September.
    6. Ulrike Huemer & Kristina Budimir & Rainer Eppel, 2010. "Soziale Sicherungssysteme und Arbeitsmarktperformanz in der EU. Mikroökonometrische Analyse," WIFO Studies, WIFO, number 41154, April.
    7. Datta Gupta, Nabanita & Smith, Nina & Verner, Mette, 2006. "Child Care and Parental Leave in the Nordic Countries: A Model to Aspire to?," IZA Discussion Papers 2014, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Child care; prices; waiting lists; regional variation; female employment;
    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

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