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Research ArticleArticles

Childcare Subsidies, Wages, and Employment of Single Mothers

Erdal Tekin
Journal of Human Resources, March 2007, 42 (2) 453-487; DOI: https://doi.org/10.3368/jhr.42.2.453
Erdal Tekin
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Abstract

This paper develops and estimates a model for the choice of part-time and full-time employment and the decision to pay for childcare among single mothers. The results indicate that a lower childcare price and a higher full-time wage rate both lead to an increase in overall employment and the use of paid childcare. The part-time wage effects are found to be too small to have significant behavioral implications. An analysis of cost-effectiveness indicates that the additional hours of work generated per dollar of government expenditure is larger for a childcare subsidy than a wage subsidy.

  • Received August 2005.
  • Accepted August 2006.

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Journal of Human Resources
Vol. 42, Issue 2
31 Mar 2007
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Childcare Subsidies, Wages, and Employment of Single Mothers
Erdal Tekin
Journal of Human Resources Mar 2007, 42 (2) 453-487; DOI: 10.3368/jhr.42.2.453

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Childcare Subsidies, Wages, and Employment of Single Mothers
Erdal Tekin
Journal of Human Resources Mar 2007, 42 (2) 453-487; DOI: 10.3368/jhr.42.2.453
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