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Work and Non-Work Related Child Care Costs and UK Mothers' Employment Rates

Author

Listed:
  • Yannis Georgellis
  • Harry Papapanagos

Abstract

Based on information from the 1991/92 General Household Survey, we examine the effect of work and non-work related child care costs on UK mother's employment rates. We find that subsidising work-related child care costs increases mothers' probability of labour force participation. However, we find also that subsidising non-work related child care costs, which are incurred by mothers irrespective of their working status, creates a significant disincentive effect for mothers to seek employment. This disincentive effect, which has been generally ignored in previous theoretical and empirical studies, puts in doubt the effectiveness of universal child care subsidies in increasing mothers' labour force participation rates.

Suggested Citation

  • Yannis Georgellis & Harry Papapanagos, 1996. "Work and Non-Work Related Child Care Costs and UK Mothers' Employment Rates," Studies in Economics 9614, School of Economics, University of Kent.
    • Handle: RePEc:ukc:ukcedp:9614
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    Keywords

    Labour Supply; Child Care Costs; Female Labour Force Participation;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

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