Fertility, employment, and child-care costs
Blau, D.M.; Robins, P.K.
Demography 26(2): 287-299
1989
ISSN/ISBN: 0070-3370 PMID: 2731623 DOI: 10.2307/2061526Document Number: 289744
A sample of labor-market and birth histories is used to estimate the effects of child-care costs on employment and fertility decisions. A reduced-form empirical analysis is performed, which is based on hazard functions for transitions among various fertility--employment states. Higher child-care costs result in a lower birth rate for nonemployed women but not for employed women. Higher child-care costs also lead to an increase in the rate of leaving employment and a reduction in the rate of entering employment. The results suggest that potential behavioral effects of child-care subsidies could be significant and should be taken into account when alternative child-care policies are being debated.