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The Mismatch between Employment and Child Care in Italy: the Impact of Rationing

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Daniela Del Boca
Daniela Vuri

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Abstract

In Italy the participation of women has not increased very much in the last few decades relative to other developed countries and it is still among the lowest in Europe. The female employment rate stands almost 13 percentage points below the EU average and 22 below the Lisbon target. One of the most important reasons is related to the characteristics of child care system. In this paper we analyze the characteristics of the child care system in Italy and its relationship to the labor market participation decision of mothers. We present a simple discrete choice framework in which the two decisions can be jointly considered, which also allows for simple forms of rationing. We go on to estimate a bivariate probit model of the child care and employment decisions and interpret the results within the framework of our model. We find evidence that rationing is an important factor in interpreting price effects on utilization rates and employment decisions.

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Paper provided by Collegio Carlo Alberto in its series Carlo Alberto Notebooks with number 31.

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Length: 40 pages
Date of creation: 2006
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Handle: RePEc:cca:wpaper:31

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Related research
Keywords: Labor Market Decisions; Fertility; Child care.;

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Find related papers by JEL classification:
J2 - Labor and Demographic Economics - - Demand and Supply of Labor
C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
D1 - Microeconomics - - Household Behavior

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Susan L. Averett & H. Elizabeth Peters & Donald M. Waldman, 1997. "Tax Credits, Labor Supply, And Child Care," The Review of Economics and Statistics, MIT Press, vol. 79(1), pages 125-135, February. [Downloadable!] (restricted)
    Other versions:
  2. Michaela Kreyenfeld & Karsten Hank, 1999. "The Availability of Child Care and Mothers' Employment in West Germany," Discussion Papers of DIW Berlin 191, DIW Berlin, German Institute for Economic Research. [Downloadable!]
  3. Blau, David M & Robins, Philip K, 1988. "Child-Care Costs and Family Labor Supply," The Review of Economics and Statistics, MIT Press, vol. 70(3), pages 374-81, August. [Downloadable!] (restricted)
  4. Ribar, D.C., 1990. "Child Care And The Labor Supply Of Married Women: Reducted Form Evidence," Papers 9-90-9, Pennsylvania State - Department of Economics.
  5. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January. [Downloadable!] (restricted)
  6. Jean Kimmel, 1998. "Child Care Costs As A Barrier To Employment For Single And Married Mothers," The Review of Economics and Statistics, MIT Press, vol. 80(2), pages 287-299, May. [Downloadable!] (restricted)
  7. Maria Chiuri, 2000. "Quality and Demand of Child Care and Female Labour Supply in Italy," LABOUR, CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd, vol. 14(1), pages 97-118, 03. [Downloadable!] (restricted)
  8. Heckman, James J, 1974. "Effects of Child-Care Programs on Women's Work Effort," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages S136-S163, Part II, . [Downloadable!] (restricted)
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  9. Sherwin Rosen, 1995. "Public Employment, Taxes and the Welfare State in Sweden," NBER Working Papers 5003, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  10. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity score matching methods for non-experimental causal studies," Discussion Papers 0102-14, Columbia University, Department of Economics. [Downloadable!]
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  11. Tom Kornstad and Thor O. Thoresen, 2002. "A Discrete Choice Model for Labor Supply and Child Care," Discussion Papers 315, Research Department of Statistics Norway. [Downloadable!]
  12. Heckman, James J, 1993. "What Has Been Learned about Labor Supply in the Past Twenty Years?," American Economic Review, American Economic Association, vol. 83(2), pages 116-21, May. [Downloadable!] (restricted)
  13. Ermisch, John F, 1989. "Purchased Child Care, Optimal Family Size and Mother's Employment: Theory and Econometric Analysis," Journal of Population Economics, Springer, vol. 2(2), pages 79-102.
  14. Deborah Cobb-Clark & Amy Liu & Deborah Mitchell, 1999. "Reassessing the Role of Child Care Costs in the Work and Care Decisions of Australian Families," CEPR Discussion Papers 409, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]
  15. Ribar, David C, 1995. "A Structural Model of Child Care and the Labor Supply of Married Women," Journal of Labor Economics, University of Chicago Press, vol. 13(3), pages 558-97, July. [Downloadable!] (restricted)
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  16. Jenkins, Stephen P & Symons, Elizabeth J, 2001. "Child Care Costs and Lone Mothers' Employment Rates: UK Evidence," Manchester School, University of Manchester, vol. 69(2), pages 121-47, March. [Downloadable!] (restricted)
  17. Rajeev H. Dehejia & Sadek Wahba, 1998. "Causal Effects in Non-Experimental Studies: Re-Evaluating the Evaluation of Training Programs," NBER Working Papers 6586, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  18. Connelly, Rachel, 1992. "The Effect of Child Care Costs on Married Women's Labor Force Participation," The Review of Economics and Statistics, MIT Press, vol. 74(1), pages 83-90, February. [Downloadable!] (restricted)
  19. Katharina Wrohlich, 2004. "Child Care Costs and Mothers’ Labor Supply: An Empirical Analysis for Germany," Discussion Papers of DIW Berlin 412, DIW Berlin, German Institute for Economic Research. [Downloadable!]
  20. Del Boca, Daniela & Locatelli, Marilena & Vuri, Daniela, 2004. "Child Care Choices by Italian Households," IZA Discussion Papers 983, Institute for the Study of Labor (IZA). [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Francesco C. Billari & Guido Tabellini, 2008. "Italians are Late: Does it Matter?," NBER Chapters, in: Demography and the Economy National Bureau of Economic Research, Inc. [Downloadable!]
  2. Claudia Olivetti, 2008. "Gender and the Labour Market: An International Perspective and the Case of Italy," Rivista di Politica Economica, SIPI Spa, vol. 98(3), pages 3-32, May-June. [Downloadable!]
  3. Melinda Mills & Letizia Mencarini & Maria Letizia Tanturri & Katia Begall, 2008. "Gender equity and fertility intentions in Italy and the Netherlands," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 18(1), pages 1-26, February. [Downloadable!]
  4. Simone Cerreia-Vioglio & Fabio Maccheroni & Massimo Marinacci & Luigi Montrucchio, 2008. "Complete Monotone Quasiconcave Duality," Carlo Alberto Notebooks 80, Collegio Carlo Alberto. [Downloadable!]
  5. Paolo Ghirardato & Fabio Maccheroni & Massimo Marinacci, 2007. "Revealed Ambiguity and Its Consequences: Updating," Carlo Alberto Notebooks 44, Collegio Carlo Alberto. [Downloadable!]
  6. Esteban Jaimovich, 2008. "Adverse Selection and Entrepreneurship in a Model of Development," Carlo Alberto Notebooks 78, Collegio Carlo Alberto. [Downloadable!]
  7. Trude Lappegård, 2008. "Family Policies and Fertility: Parents' Parental Leave Use, Childcare Availability, the Introduction of Childcare Cash Benefit and Continued Childbearing in Norway," Discussion Papers 564, Research Department of Statistics Norway. [Downloadable!]
  8. Claudia Olivetti, . "Gender and the Labour Market: An International Perspective and the case of Italy," Boston University - Department of Economics - Working Papers Series wp2009-010, Boston University - Department of Economics. [Downloadable!]
  9. Daron Acemoglu & Davide Ticchi & Andrea Vindigni, 2008. "A Theory of Military Dictatorships," Carlo Alberto Notebooks 74, Collegio Carlo Alberto. [Downloadable!]
    Other versions:
  10. Francesco C.Billari & Vincenzo Galasso, 2008. "What Explains fertility? Evidence from Italian pension reforms," Working Papers 343, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University. [Downloadable!]
    Other versions:
  11. Esteban Jaimovich, 2007. "Sectoral Differentiation, Allocation of Talent, and Financial Development," Carlo Alberto Notebooks 59, Collegio Carlo Alberto, revised 2009. [Downloadable!]
  12. Daron Acemoglu & Victor Chernozhukov & Muhamet Yildiz, 2007. "Learning and Disagreement in an Uncertain World," Carlo Alberto Notebooks 48, Collegio Carlo Alberto. [Downloadable!]
    Other versions:
  13. Ales Cerný & Fabio Maccheroni & Massimo Marinacci & Aldo Rustichini, 2008. "On the Computation of Optimal Monotone Mean-Variance Portfolios via Truncated Quadratic Utility," Carlo Alberto Notebooks 79, Collegio Carlo Alberto. [Downloadable!]
  14. Russell Gerrard & Bjarne Højgaard & Elena Vigna, 2008. "Choosing the Optimal Annuitization Time Post Retirement," Carlo Alberto Notebooks 76, Collegio Carlo Alberto. [Downloadable!]
  15. Itzhak Gilboa & Fabio Maccheroni & Massimo Marinacci & David Schmeidler, 2008. "Objective and Subjective Rationality in a Multiple Prior Model," Carlo Alberto Notebooks 73, Collegio Carlo Alberto, revised 2008. [Downloadable!]
  16. Mendez, Ildefonso, 2008. "Intergenerational Time Transfers and Internal Migration: Accounting for Low Spatial Mobility in Southern Europe," MPRA Paper 8654, University Library of Munich, Germany. [Downloadable!]
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