The Value of Employer-Sponsored Child Care to Employees

34 Pages Posted: 15 Sep 2004

See all articles by Rachel Connelly

Rachel Connelly

Bowdoin College - Department of Economics; IZA Institute of Labor Economics

Deborah S. Degraff

Bowdoin College - Department of Economics

Rachel A. Willis

University of North Carolina (UNC) at Chapel Hill - Curriculum in American Studies

Abstract

This article uses the contingent valuation method for calculating the value of employer-sponsored child care to employees. Like many environmental amenities, there may be a nonuse or existence value of working for a company that offers employer-sponsored child care (ESCC), as well as a use value to parents who have children in the center. We test this hypothesis using data from three firms, two of which have on-site child care. Our findings indicate that price is a determinant of willingness to pay for the continued existence or establishment of an on-site center. We find evidence of the existence value, even for employees without young children, and a greater valuation among recent hires than among longer-term employees.

Suggested Citation

Connelly, Rachel and Degraff, Deborah S. and Willis, Rachel A., The Value of Employer-Sponsored Child Care to Employees. Industrial Relations, Vol. 43, No. 4, pp. 759-792, October 2004. Available at SSRN: https://ssrn.com/abstract=591469

Rachel Connelly

Bowdoin College - Department of Economics ( email )

Brunswick, ME 04011
United States
207-725-3790 (Phone)

IZA Institute of Labor Economics

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

Deborah S. Degraff

Bowdoin College - Department of Economics ( email )

9700 College Station
Brunswick, ME 04011
United States

Rachel A. Willis (Contact Author)

University of North Carolina (UNC) at Chapel Hill - Curriculum in American Studies ( email )

Chapel Hill, NC 27599
United States

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