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Comment on "Multilateral Economic Cooperation and the International Transmission of Fiscal Policy"

  • Political Science


NBER WORKING PAPER SERIES CHILD CARE AND MOTHERS' EMPLOYMENT DECISIONS Patricia M. Anderson Phillip B. Levine Working Paper 7058 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 March 1999 Prepared for the Joint Center for Poverty Research Conference, "Labor Markets and Less-Skilled Workers," November 5-6 1998. We are grateful for the comments provided by Becky Blank, David Card, and Sandra Hofferth, along with participants of both the November conference and the March "pre-conference." We also thank Doug Staiger for helpful discussions. The views expressed in this paper are those of the authors and do not reflect those of the National Bureau of Economic Research. © 1999 by Patricia M. Anderson and Phillip B. Levine. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. Child Care and Mothers' Employment Decisions Patricia M. Anderson and Phillip B. Levine NBER Working Paper No. 7058 March 1999 JELNo. J13 ABSTRACT Rising female labor force participation and recent changes to the welfare system have increased the importance of child care for all women and, particularly, the less-skilled. This paper focuses on the child care decisions of women who differ by their skill level and the role that costs play in their work decision. After reviewing government child-care programs targeted at less-skilled women, we present a descriptive analysis of current utilization and child care costs. We emphasize differences across skill groups, showing that the least-skilled women both use less costly paid care and are more likely to use unpaid care. We then survey the existing evidence regarding the responsiveness of female labor supply to child care costs, reviewing both econometric studies and demonstration projects that include child care components. To investigate variation in t

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