Child Care Costs and Employment Decisions of Greek Women
22 Pages Posted: 17 Jul 2006
Date Written: December 2004
We investigate the effects of child care costs on women's labor market decisions. Decisions regarding labor force participation and non-maternal child care are jointly estimated. Employing data from the 1998/99 Household Budget Survey and using a bivariate probit with sample selection and a binomial probit for labor force participation, a strong negative relationship between participation and paying for care is identified. The results indicate that the estimated hourly cost of child care affects negatively the probability of participation. Nevertheless, it appears that offered market wages and the financial situation of the household play a more vital role than the cost of child care in the labor market decisions of Greek mothers, ceteris paribus.
Keywords: Child care costs, labor force participation, bivariate probit, Greece
JEL Classification: J13, J22
Suggested Citation: Suggested Citation