The Effect of Child Care and Part Time Opportunities on Participation and Fertility Decisions in Italy

36 Pages Posted: 15 Feb 2002

See all articles by Daniela Del Boca

Daniela Del Boca

University of Turin - Department of Economics; IZA Institute of Labor Economics; Centre for Household, Income, Labour and Demographic Economics (CHILD)

Date Written: February 2002

Abstract

Economic models of household behavior typically yield the prediction that increases in schooling levels and wage rates of married women lead to increases in their labor supply and reductions in fertility. In Italy, as well as in other Southern European countries, low labor market participation rates of married women are observed together with low birth rates. Our proposed explanation for this apparent anomaly involves the Italian institutional structure, particularly as reflected in rigidities and imperfections in the labor market and characteristics of the publicly-funded child care system. These rigidities tend to simultaneously increase the costs of having children and to discourage the labor market participation of married women. We analyze a model of labor supply and fertility, using panel data from the Bank of Italy which have been merged with regional data describing the available opportunities in each sample household's environment. The empirical results show that the availability of child care and part time work increase both the probability of working and having a child. Policies which would provide more flexible working hours choices and greater child care availability would aid in reducing the financial burden of children.

Keywords: Labor Market Decisions, Fertility, Child Care

JEL Classification: J2, C3, D1

Suggested Citation

Del Boca, Daniela, The Effect of Child Care and Part Time Opportunities on Participation and Fertility Decisions in Italy (February 2002). IZA Discussion Paper No. 427. Available at SSRN: https://ssrn.com/abstract=300643

Daniela Del Boca (Contact Author)

University of Turin - Department of Economics ( email )

Via Po, 53
Torino, 10124
Italy

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Centre for Household, Income, Labour and Demographic Economics (CHILD)

Turin, TO
Italy

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