Bick, Alexander (2010): The quantitative role of child care for female labor force participation and fertility.
Download (469Kb) | Preview
Consistent with facts for a cross-section of OECD countries, I document that the labor force participation rate of West German mothers with children aged zero to two exceeds the corresponding child care enrollment rate whereas the opposite is true for mothers with children aged three to mandatory school age. I develop a life-cycle model that explicitly accounts for this age-dependent relationship through various types of non-paid and paid child care. The calibrated version of the model is used to evaluate two recently passed policy reforms concerning the supply of subsidized child care for children aged zero to two in Germany. These counterfactual policy experiments suggest that the lack of subsidized child care constitutes indeed for some females a barrier to participate in the labor market and depresses fertility.
|Item Type:||MPRA Paper|
|Original Title:||The quantitative role of child care for female labor force participation and fertility|
|Keywords:||Child Care, Fertility, Life-cycle Female Labor Supply|
|Subjects:||J - Labor and Demographic Economics > J1 - Demographic Economics > J13 - Fertility; Family Planning; Child Care; Children; Youth
J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J22 - Time Allocation and Labor Supply
D - Microeconomics > D1 - Household Behavior and Family Economics > D10 - General
|Depositing User:||Alexander Bick|
|Date Deposited:||02. Oct 2010 21:40|
|Last Modified:||14. Feb 2013 19:45|
Apps, P. and Rees, R. (2005). Gender, Time Use and Public Policy over the Life Cycle, Oxford Review of Economic Policy 21(3): 439–461.
Attanasio, O., Low, H. and Sanchez-Marcos, V. (2008). Explaining Changes in Female Labor Supply in a Life-Cycle Model, American Economic Review 98(4): 1517–1542.
Baker, M., Gruber, J. and Milligan, K. (2008). Universal Child Care, Maternal Labor Supply and Family Well-Being, Journal of Political Economy 116(4): 709–745.
Bick, A. (2010). Maternal Labor Force Participation in West and East Germany, mimeo, Goethe University, Frankfurt.
Del Boca, D. (2002). The effect of child care and part time opportunities on participation and fertility decisions in Italy, Journal of Population Economics 15: 549–573.
Del Boca, D. and Sauer, R. M. (2009). Life cycle empolyment and fertility across institutional environments, European Economic Review 53: 274– 292.
Domeij, D. and Klein, P. (2010). Should day care be subsidized?, Working paper, Stockholm School of Economics.
European Council (2002). Barcelona European Council, Presidency Conclusions SN 100/1/02 REV 1.
Francesconi, M. (2002). A Joint Dynamic Model of Fertility and Work of Married Women, Journal of Labor Economics 20(2): 336–380.
German Federal Parliament (2008). Entwurf eines Gesetzes zur Foerderung von Kindern unter drei Jahre in Tageseinrichtungen und in der Kindertagespflege (Kinderfoerderungsgesetz - Kifoeg), Drucksache 16/10173.
Gray, G. A. and Kolda, T. G. (2006). Algorithm 856: APPSPACK 4.0: Asynchronous Parallel Pattern Search for Derivative-Free Optimization, ACM Transactions on Mathematical Software 32(3): 485–507.
Greenwood, J., Guner, N. and Knowles, J. A. (2003). More on Marriage, Fertility and the Distribution of Income, International Economic Review 44(3): 827–826.
Haan, P. and Wrohlich, K. (2009). Can Child Care Policy Encourage Employment and Fertility? Evidence from a Structural Model, Working paper, IZA.
Hotz, V. J. and Miller, R. A. (1988). An Empirical Analysis of Life Cycle Fertility and Female Labor Supply, Econometrica 56(1): 91–118.
Jones, L. E., Schoonbroodt, A. and Tertilt, M. (Forthcoming). Demography and the Economy, NBER, chapter Fertility Theories: Can They Explain the Negative Fertility-Income Relationship?
Kolda, T. G. (2005). Revisiting asynchronous parallel pattern search for nonlinear optimization, SIAM Journal on Optimization 16(2): 563–586.
Kolvenbach, F.-J., Haustein, T., Krieger, S., Seewald, H. and Weber, T. (2004). Kindertagesbetreuung in Deutschland, Report, German Statistical Office.
Kornstad, T. and Thoresen, T. O. (2007). A discrete chioce model for labor supply and childcare, Journal of Population Economics 20: 781–803.
Kreyenfeld, M., Spieß, K. and Wagner, G. G. (2002). Kinderbetreuungspolitik in Deutschland, Zeitschrift fuer Erziehungswissenschaft 5(2): 201– 221.
Kydland, F. E. and Prescott, E. C. (1982). Time to Build and Aggregate Fluctuations, Econometrica 50: 1345–1370.
Lefebvre, P. and Merrigan, P. (2008). Child-Care Pliy and the Labor Supply of Mothers with Young Children: A Natural Experiment from Canada, Journal of Labor Economics 26(3): 519–548.
Ludsteck, J. and Schoenberg, U. (2007). Maternity Leave Legislation, Female Labor Supply, and the Family Wage Gap, Working paper, IZA.
Mincer, J. (1974). Schooling, Experience and Earnings, New York: National Bureau of Economic Research.
OECD (2007). Babies and Bosses - Reconciling Work and Family Life: A Synthesis of Findings for OECD Countries.
Robert Koch Institut and German Statistical Office (2004). Ungewollte Kinderlosigkeit, Gesundheitsberichterstattung des Bundes 20.
Sharma, M. R. and Steiner, M. (2008). Ausbau der Kinderbetreuung - Kosten, Nutzen, Finanzierung, Dossier, Federal Ministry of Family Affairs, Senior Citizens, Women and Youth.
Tauchen, G. (1986). Finite State Markov-Chain Approximations to Univariate and Vector Autoregressions, Economic Letters 20: 177–181.
Wagner, G. G., Frick, J. R. and Schupp, J. (2007). The German Socio-Economic Panel Study (SOEP) - Scope, Evolution and Enhancements, Schmollers Jahrbuch 127(1): 139–169.
Wrohlich, K. (2006). Labor Supply and Child Care Choices in a Rationed Child Care Market, Working paper, IZA.
Wrohlich, K. (2008). The excess demand for subsidized child care in Germany, Applied Economics 40: 1217–1228.