Fertility, employment, and child-care costs.
A sample of labor-market and birth histories is used to estimate the effects of child-care costs on employment and fertility decisions. A reduced-form empirical analysis is performed, which is based on hazard functions for transitions among various fertility--employment states. Higher child-care costs result in a lower birth rate for nonemployed women but not for employed women. Higher child-care costs also lead to an increase in the rate of leaving employment and a reduction in the rate of entering employment. The results suggest that potential behavioral effects of child-care subsidies could be significant and should be taken into account when alternative child-care policies are being debated.
Blau
D M
DM
Department of Economics, University of North Carolina, Chapel Hill 27599-3305.
Robins
P K
PK
D000328:Adult; D002654:Child Care / Q000639:trends*; D002675:Child, Preschool; D004651:Employment / Q000639:trends*; D005260:Female; D005298:Fertility; D006801:Humans; D014481:United States; D014931:Women, Working