Labour Supply and Childcare for British Mothers in Two-Parent Families: A Structural Approach

42 Pages Posted: 20 Jan 2006

See all articles by Antonia Parera-Nicolau

Antonia Parera-Nicolau

Universitat de les Illes Balears - Departament d'Economia Aplicada

Karen Mumford

University of York (UK); IZA Institute of Labor Economics; CAMA

Date Written: December 2005

Abstract

We develop and estimate a structural model of labour supply for British two parent families, taking explicit account of the importance of childcare related variables. We find working mothers do not increase their working hours when hourly wages increase, indeed, they are more likely to reduce their hours. The major inducement for working mothers to increase their working hours, that we find, is the provision of high quality formal childcare. Implying that government policy aiming at increasing working hours amongst British mothers of pre-school children may need to focus on the quality as well as the quantity of formal child care that is available.

Keywords: mothers, Britain, childcare, parents labour supply

JEL Classification: J2, J3, J80

Suggested Citation

Parera-Nicolau, Antonia and Mumford, Karen A., Labour Supply and Childcare for British Mothers in Two-Parent Families: A Structural Approach (December 2005). IZA Discussion Paper No. 1908. Available at SSRN: https://ssrn.com/abstract=876446

Antonia Parera-Nicolau

Universitat de les Illes Balears - Departament d'Economia Aplicada ( email )

Crta. de Valldemossa km 7,5
07122 Palma
Spain

Karen A. Mumford (Contact Author)

University of York (UK) ( email )

Heslington
York YO10 5DD
United Kingdom

IZA Institute of Labor Economics

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

CAMA ( email )

ANU College of Business and Economics
Canberra, Australian Capital Territory 0200
Australia

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