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The joint decision of female labour supply and childcare in Italy under costs and availability constraints

Francesco Figari () and Edlira Narazani
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Francesco Figari: University of Insubria

Economia Politica: Journal of Analytical and Institutional Economics, 2020, vol. 37, issue 2, No 3, 439 pages

Abstract: Abstract It is widely recognized that childcare has important pedagogical, economic and social effects on both children and parents. This paper is the first attempt to estimate a joint structural model of female labour supply and childcare behavior applied to Italy in order to analyse the effects of relaxing the existing constraints in terms of childcare availability and costs by considering public, private and informal childcare. Results suggest that Italian households might alter their childcare and labour supply behaviors substantially if the coverage rate of formal childcare increases to reach the European targets. Overall, increasing child care coverage is estimated to be more effective in enhancing labour incentives than decreasing existing child care costs, at the same budgetary cost.

Keywords: Childcare; Female labour market participation; Labour supply; Italy; Microsimulation; EUROMOD (search for similar items in EconPapers)
JEL-codes: H53 I38 J13 J22 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1007/s40888-019-00160-w

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