Childcare Subsidies, Wages, and Employment of Single Mothers

Erdal Tekin

Journal of Human Resources, 2007, vol. 42, issue 2

Abstract: This paper develops and estimates a model for the choice of part-time and full-time employment and the decision to pay for childcare among single mothers. The results indicate that a lower childcare price and a higher full-time wage rate both lead to an increase in overall employment and the use of paid childcare. The part-time wage effects are found to be too small to have significant behavioral implications. An analysis of cost-effectiveness indicates that the additional hours of work generated per dollar of government expenditure is larger for a childcare subsidy than a wage subsidy.

Date: 2007
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Related works:
Working Paper: Child Care Subsidies, Wages, And Employment of Single Mothers (2003)
Working Paper: Child Care Subsidies, Wages, and Employment of Single Mothers (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:uwp:jhriss:v:42:y:2007:i2:p453-487

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