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The Impact of Child Care Cost on the Labour Supply of Married Mothers: Evidence from Canada

Lisa M. Powell

Canadian Journal of Economics, 1997, vol. 30, issue 3, 577-94

Abstract: This paper provides estimates for Canada of the impact of childcare costs on the labor supply of married mothers. This is done by linking two microdata sources: the 1988 Canadian National Child Care Survey and the 1988 Labour Market Activity Survey. The key results show that the market wage and childcare costs have, respectively, a significant positive and negative impact on both hours of work and the labor-force-participation decision by married mothers. The childcare cost elasticities for labor force participation and hours of work are reported to be -0.38 and -0.32, respectively.

Date: 1997
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