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Childcare Prices and Maternal Employment : A Meta-Analysis

Author

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  • Yusuf Emre Akgunduz
  • Janneke Plantenga

Abstract

The literature estimates for labor force participation elasticity with regards to child care prices are extensive and varying. While some estimates imply substantial gains from child care subsidies, others find insignificant effects. To determine the causes of the variance, this paper reviews and analyzes the elasticity sizes using estimates from 36 peer-reviewed articles and working papers in the literature. We start by reviewing the theoretical and empirical aspects related to participation elasticity with regards to child care costs, paying special attention to sample characteristics, methodological aspects and macro level factors. We conclude by providing a meta-regression using control variables based on our review of the literature to explain some of the differences between the estimates. As research builds on and improves the methods and assumptions in prior works, elasticity estimates have become smaller over time. This decline might also be partially explained by changes in labor market characteristics. In countries with high rates of part-time work and very high or very low rates of female labor force participation, we find elasticity rates to be smaller.

Suggested Citation

  • Yusuf Emre Akgunduz & Janneke Plantenga, 2016. "Childcare Prices and Maternal Employment : A Meta-Analysis," Working Papers 1626, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
    • Handle: RePEc:tcb:wpaper:1626
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    File URL: https://www.tcmb.gov.tr/wps/wcm/connect/EN/TCMB+EN/Main+Menu/Publications/Research/Working+Paperss/2016/16-26
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    Citations

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    Cited by:

    1. Macon, Luke & McLellan, Benjamin & Kanamura, Takashi, 2019. "Climate Policies and the Tax-Interaction Effect, in Context," MPRA Paper 97053, University Library of Munich, Germany.
    2. Thoresen, Thor O. & Vattø, Trine E., 2019. "An up-to-date joint labor supply and child care choice model," European Economic Review, Elsevier, vol. 112(C), pages 51-73.
    3. Wim Van Lancker & Jeroen Horemans, 2017. "Into the Great Wide Unknown: Untangling the Relationship between Childcare Service Use and In-Work Poverty," Working Papers 1704, Herman Deleeck Centre for Social Policy, University of Antwerp.
    4. Russell, Helen & McGinnity, Frances & Fahey, Éamonn & Kenny, Oona, 2018. "Maternal employment and the cost of childcare in Ireland," Research Series, Economic and Social Research Institute (ESRI), number RS73.
    5. Emily Nix & Martin Eckhoff Andresen, 2019. "What Causes the Child Penalty? Evidence from Same Sex Couples and Policy Reforms," Discussion Papers 902, Statistics Norway, Research Department.

    More about this item

    Keywords

    Childcare prices; Female employment; Meta-analysis;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • D19 - Microeconomics - - Household Behavior - - - Other

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