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Title: Child Care Costs and Female Labor Supply: An Empirical Investigation of the Effects of the Child Care Tax Credit on Female Labor Supply & Demand for Child Care
Resulting in 1 citation.
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Averett, Susan L. |
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Child Care Costs and Female Labor Supply: An Empirical Investigation of the Effects of the Child Care Tax Credit on Female Labor Supply & Demand for Child Care Ph.D. Dissertation, University of Colorado, 1991. DAI-A 52/06, p. 2235, December 1991 Cohort(s): NLSY79 Publisher: UMI - University Microfilms, Bell and Howell Information and Learning Keyword(s): Child Care; Labor Supply; Mothers; Taxes While the increasing labor force participation rates of mothers with young children is a well documented phenomenon, little is known about the role child care costs play in this increase, or how these costs influence the demand for quality and quantity of child care. This dissertation is a theoretical and empirical exploration of the effects of the child care credit in the U.S. income tax system on female labor supply and the choice of formal versus informal child care arrangements. This tax credit, inherent in the U.S. federal income tax code since 1976, provides a subsidy to working families towards both the quantity and quality of formal child care purchased. This subsidy creates a nonlinear budget set similar in shape to that created by a progressive income tax. Data from the youth cohort of the National Longitudinal Surveys are utilized to estimate the labor supply function of the mother. The labor supply response is found to be quite large with respect to changes in the wage net of care costs. A variety of specifications are estimated and the results appear to be robust. Policy simulations are performed to determine the effects of various proposals concerning the federal funding of child care. The results from simulating the model indicate that subsidization of child care costs through policies enacted by the government can influence female labor supply. Specifically, a government policy that has the effect of raising net wage rate, perhaps by increasing the percentage of child care costs that are subsidized, can have substantial impacts on female labor supply. |
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Bibliography Citation
Averett, Susan L. Child Care Costs and Female Labor Supply: An Empirical Investigation of the Effects of the Child Care Tax Credit on Female Labor Supply & Demand for Child Care. Ph.D. Dissertation, University of Colorado, 1991. DAI-A 52/06, p. 2235, December 1991. |