Part-Time Employment Traps and Childcare Policy

Alison Booth and Melvyn Coles

No 4357, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We model educational investment, wages and employment status (full-time, part-time or non-participation) in a frictional world in which heterogeneous workers have different productivities, both at home and in the workplace. We investigate the degree to which there might be under-employment and distortions in human capital investment, and we then show how childcare policy can be used not only to correct the ex post under-participation problem but also to provide efficient incentives to invest optimally ex ante in education.

Keywords: Part-time; Full-time; Education; Market failure; Childcare (search for similar items in EconPapers)
JEL-codes: H24 J13 J24 J31 J42 (search for similar items in EconPapers)
Date: 2004-04
New Economics Papers: this item is included in nep-lab
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