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dc.titleChild Care Markets, Parental Labor Supply, and Child Development
dc.contributor.authorBerlinski, Samuel
dc.contributor.authorFerreyra, María Marta
dc.contributor.authorFlabbi, Luca
dc.contributor.authorMartin, Juan David
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageUnited States
dc.date.available2020-11-20T00:00:00
dc.date.issue2020-11-20T00:00:00
dc.description.abstractWe develop and estimate a model of child care markets that endogenizes both demand and supply. On the demand side, families with a child make consumption, labor supply, and child-care decisions within a static, unitary household model. On the supply side, child care providers make entry, price, and quality decisions under monopolistic competition. Child development is a function of the time spent with each parent and at the child care center; these inputs vary in their impact. We estimate the structural parameters of the model using the 2003 Early Childhood Longitudinal Study, which contains information on parental employment and wages, child care choices, child development, and center quality. We use our estimates to evaluate the impact of several policies, including vouchers, cash transfers, quality regulations, and public provision. Among these, a combination of quality regulation and vouchers for working families leads to the greatest gains in average child development and to a large expansion in child care use and female labor supply, all at a relatively low fiscal cost.
dc.format.extent47
dc.identifier.doihttp://dx.doi.org/10.18235/0002872
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Child-Care-Markets-Parental-Labor-Supply-and-Child-Development.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectLabor Supply
dc.subjectFemale Labor Force
dc.subjectEarly Childhood Development
dc.subjectChild Development
dc.subjectChild Care Quality
dc.subjectWage
dc.subjectLabor Force Participation
dc.subject.jelcodeJ13 - Fertility • Family Planning • Child Care • Children • Youth
dc.subject.jelcodeJ22 - Time Allocation and Labor Supply
dc.subject.jelcodeL10 - Market Structure, Firm Strategy, and Market Performance: General
dc.subject.keywordsearly childhood development;Female labor supply;Child Care Markets;Child Care Quality
dc.typeWorking Papers
idb.identifier.pubnumberIDB-WP-01163
idb.operationRG-K1416
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