Child Care Markets, Parental Labor Supply, and Child Development

Child Care Markets, Parental Labor Supply, and Child Development

This paper develops and estimates a model of supply and demand for child care. On the demand side, one- and two-parent households make consumption, labor supply, and childcare decisions. On the supply side, non-parental care providers include child care centers, paid caregivers who operate at the ch...

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Main Authors: Berlinski, Samuel, Ferreyra, Maria Marta, Flabbi, Luca, Martin, Juan David
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
CHILD CARE
CHILD DEVELOPMENT
CHILD CARE ARRANGEMENT
LABOR FORCE PARTICIPATION
CHILD CARE SERVICES
Online Access:http://documents.worldbank.org/curated/en/874111602004483025/Child-Care-Markets-Parental-Labor-Supply-and-Child-Development
http://hdl.handle.net/10986/34598
id okr-10986-34598
recordtype oai_dc
spelling okr-10986-345982022-09-20T00:10:12Z Child Care Markets, Parental Labor Supply, and Child Development Berlinski, Samuel Ferreyra, Maria Marta Flabbi, Luca Martin, Juan David CHILD CARE CHILD DEVELOPMENT CHILD CARE ARRANGEMENT LABOR FORCE PARTICIPATION CHILD CARE SERVICES This paper develops and estimates a model of supply and demand for child care. On the demand side, one- and two-parent households make consumption, labor supply, and childcare decisions. On the supply side, non-parental care providers include child care centers, paid caregivers who operate at the child’s home, and unpaid, informal care-givers. Centers make entry, price, and quality decisions under monopolistic competition. Child development is a function of the time spent with each parent and non-parental care providers; these inputs vary in impact. The model’s structural parameters are estimated using the 2003 Early Childhood Longitudinal Study, which contains information on parental employment and wages, child care choices, child development, and center quality. The model features locations that differ in size and median family income. Parameter estimates are used to evaluate multiple policies including vouchers, cash transfers, and public provision. Vouchers that can only be used in high-quality centers or that require mothers to work are particularly effective, as they deliver child development gains while increasing mothers’ labor supply, thereby limiting policies’ fiscal cost. 2020-10-08T14:41:46Z 2020-10-08T14:41:46Z 2020-10 Working Paper http://documents.worldbank.org/curated/en/874111602004483025/Child-Care-Markets-Parental-Labor-Supply-and-Child-Development http://hdl.handle.net/10986/34598 English Policy Research Working Paper;No. 9427 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic CHILD CARE
CHILD DEVELOPMENT
CHILD CARE ARRANGEMENT
LABOR FORCE PARTICIPATION
CHILD CARE SERVICES
spellingShingle CHILD CARE
CHILD DEVELOPMENT
CHILD CARE ARRANGEMENT
LABOR FORCE PARTICIPATION
CHILD CARE SERVICES
Berlinski, Samuel
Ferreyra, Maria Marta
Flabbi, Luca
Martin, Juan David
Child Care Markets, Parental Labor Supply, and Child Development
geographic_facet Latin America & Caribbean
relation Policy Research Working Paper;No. 9427
description This paper develops and estimates a model of supply and demand for child care. On the demand side, one- and two-parent households make consumption, labor supply, and childcare decisions. On the supply side, non-parental care providers include child care centers, paid caregivers who operate at the child’s home, and unpaid, informal care-givers. Centers make entry, price, and quality decisions under monopolistic competition. Child development is a function of the time spent with each parent and non-parental care providers; these inputs vary in impact. The model’s structural parameters are estimated using the 2003 Early Childhood Longitudinal Study, which contains information on parental employment and wages, child care choices, child development, and center quality. The model features locations that differ in size and median family income. Parameter estimates are used to evaluate multiple policies including vouchers, cash transfers, and public provision. Vouchers that can only be used in high-quality centers or that require mothers to work are particularly effective, as they deliver child development gains while increasing mothers’ labor supply, thereby limiting policies’ fiscal cost.
format Working Paper
author Berlinski, Samuel
Ferreyra, Maria Marta
Flabbi, Luca
Martin, Juan David
author_facet Berlinski, Samuel
Ferreyra, Maria Marta
Flabbi, Luca
Martin, Juan David
author_sort Berlinski, Samuel
title Child Care Markets, Parental Labor Supply, and Child Development
title_short Child Care Markets, Parental Labor Supply, and Child Development
title_full Child Care Markets, Parental Labor Supply, and Child Development
title_fullStr Child Care Markets, Parental Labor Supply, and Child Development
title_full_unstemmed Child Care Markets, Parental Labor Supply, and Child Development
title_sort child care markets, parental labor supply, and child development
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/874111602004483025/Child-Care-Markets-Parental-Labor-Supply-and-Child-Development
http://hdl.handle.net/10986/34598
_version_ 1764481244829057024

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