The Supply of Child Care Labor

David Blau

Journal of Labor Economics, 1993, vol. 11, issue 2, 324-47

Abstract: This article presents estimates of the elasticity of supply of labor to child care. This parameter is an important determinant of the effects of child-care subsidies and regulations on the cost of child care. Using data from the Current Population Survey, there is evidence of an elasticity in the range of 1.2-1.9. This implies that the majority of the benefits of child-care subsidies accrue to consumers of child care. It is also consistent with the fact that child-care workers' wages remained flat in real terms in recent years, despite rapid growth in the demand for child care. Copyright 1993 by University of Chicago Press.

Date: 1993
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