Child Care Costs and Employment Decisions of Greek Women

22 Pages Posted: 17 Jul 2006

See all articles by Joan Daouli

Joan Daouli

University of Patras - Department of Economics

Michael Demoussis

University of Patras - Department of Economics

Nicholas Giannakopoulos

University of Patras - Department of Economics

Date Written: December 2004

Abstract

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

Daouli, Joan and Demoussis, Michael and Giannakopoulos, Nicholas, Child Care Costs and Employment Decisions of Greek Women (December 2004). Available at SSRN: https://ssrn.com/abstract=917681 or http://dx.doi.org/10.2139/ssrn.917681

Joan Daouli

University of Patras - Department of Economics ( email )

Patras GR-265 04
Greece

Michael Demoussis

University of Patras - Department of Economics ( email )

Patras GR-265 04
Greece

HOME PAGE: http://www.geocities.com/michael_demoussis/

Nicholas Giannakopoulos (Contact Author)

University of Patras - Department of Economics ( email )

Rio Patras
Achaia Rio
Patras GR-265 04
Greece

HOME PAGE: http://www.geocities.com/giannakopoulos_nicholas/index

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