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Childcare Availability and Female Labor Force Participation: An Empirical Examination of the Chile Crece Contigo Program

Author

Listed:
  • James Manley

    (Department of Economics, Towson University)

  • Felipe Vasquez

    (School of Business and Economics, Universidad del Desarrollo)

Abstract

Few works have examined the relationship between maternal participation in the labor force and the availability of child care in developing countries. Existing papers also tend to rely on relatively simplistic, correlative analysis of the data rather than modeling the joint decision to invest in formal childcare and to choose a level of labor supply. This paper takes advantage of a policy-induced positive shock in the provision of child care to apply instrumental variables in a simultaneous equations context, resulting in estimates that are more rigorous than any currently available in a developing country context. Policymakers are able to optimize their policy choices if they have better information on the elasticity of labor supply with respect to the cost of child care, and we find no evidence that the program is associated with an increase in women's labor supply.

Suggested Citation

  • James Manley & Felipe Vasquez, 2013. "Childcare Availability and Female Labor Force Participation: An Empirical Examination of the Chile Crece Contigo Program," Working Papers 2013-03, Towson University, Department of Economics, revised Dec 2013.
    • Handle: RePEc:tow:wpaper:2013-03
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    File URL: http://webapps.towson.edu/cbe/economics/workingpapers/2013-03.pdf
    File Function: First version, 2013
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    Cited by:

    1. Martínez A., Claudia & Perticará, Marcela, 2017. "Childcare effects on maternal employment: Evidence from Chile," Journal of Development Economics, Elsevier, vol. 126(C), pages 127-137.

    More about this item

    Keywords

    Female Labor Supply; Child Care; Labor Force; Chile; CASEN; JUNJI.;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods

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