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Determinants of Child Care Participation

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  • Katja Coneus
  • Kathrin Göggel
  • Grit Muehler

Abstract

When estimating the determinants of child care participation, the simultaneity in mothers' decision to work and in the decision to use child care is a major challenge. In this study, we provide evidence on the determinants of institutional child care use accounting for the endogeneity of mothers' labor supply by applying an instrumental variables approach. This endogeneity has been neglected in studies on this issue so far, even though the decision to use child care outside the home is strongly connected to mothers' decision to work after childbirth and vice versa. Based on the German Socio-economic Panel (GSOEP) from 1989-2006 we show that children living in Western Germany have a higher probability to attend institutional care if their mothers increase their actual weekly working time. Estimating the determining factors of child care participation without correcting for simultaneity underestimates the influence of maternal working time by more than a half.

Suggested Citation

  • Katja Coneus & Kathrin Göggel & Grit Muehler, 2007. "Determinants of Child Care Participation," SOEPpapers on Multidisciplinary Panel Data Research 72, DIW Berlin, The German Socio-Economic Panel (SOEP).
    • Handle: RePEc:diw:diwsop:diw_sp72
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    References listed on IDEAS

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    1. Johansen, A-S & Leibowitz, A & Waite, L-J, 1996. "The Importance of Child-Care Characteristics to Choice of Care," Papers 96-21, RAND - Reprint Series.
    2. Djurdjevic, Dragana, 2005. "Women's Labour Supply after Childbirth: An Empirical Analysis for Switzerland," Darmstadt Discussion Papers in Economics 144, Darmstadt University of Technology, Department of Law and Economics.
    3. Philip K. Robins & Charles Michalopoulos, 2002. "Employment and child-care choices of single-parent families in Canada and the United States," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(3), pages 465-493.
    4. Peter Haan, 2005. "State Dependence and Female Labor Supply in Germany: The Extensive and the Intensive Margin," Discussion Papers of DIW Berlin 538, DIW Berlin, German Institute for Economic Research.
    5. Johannes Geyer & Viktor Steiner, 2007. "Short-Run and Long-Term Effects of Childbirth on Mothers' Employment and Working Hours across Institutional Regimes: An Empirical Analysis Based on the European Community Household Panel," Discussion Papers of DIW Berlin 682, DIW Berlin, German Institute for Economic Research.
    6. Daniela Del Boca & Marilena Locatelli & Daniela Vuri, 2005. "Child-Care Choices by Working Mothers: The Case of Italy," Review of Economics of the Household, Springer, vol. 3(4), pages 453-477, December.
    7. Stefan Bender & Annette Kohlmann & Stefan Lang, 2003. "Women, work, and motherhood: changing employment penalties for motherhood in West Germany after 1945 - a comparative analysis of cohorts born in 1934-1971," MPIDR Working Papers WP-2003-006, Max Planck Institute for Demographic Research, Rostock, Germany.
    8. Djurdjevic, Dragana, 2009. "Women's Labour Supply after Childbirth: An Empirical Analysis for Switzerland," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 77373, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    9. C. Katharina Spieß & Felix Büchel & Joachim R. Frick, 2002. "Kinderbetreuung in West- und Ostdeutschland: sozioökonomischer Hintergrund entscheidend," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 69(31), pages 518-524.
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    Cited by:

    1. Blagica Petreski & Marjan Petreski, 2018. "Analysis of the public spending on education and on social protection of children in the country," Finance Think Policy Studies 2018-12/20, Finance Think - Economic Research and Policy Institute.

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    More about this item

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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