The Choice of Paid Childcare, Welfare, and Labor Supply of Single Mothers

• This paper considers the simultaneous relationship of a single motherâ??s decision to choose paid-childcare, welfare and labor supply, by formulating and estimating a structural labor supply model. The results show that an increase in the social assistance norm has a relatively small effect on paid childcare utilization but a relatively larger effect on the labor supply. In contrast, a reduction of the childcare cost has a relatively large effect on the social assistance utilization but a relatively small effect on the labor supply. Our estimates suggest that a decrease in childcare cost increases the labor supply of those working rather than encouraging nonworkers to start work.

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

Nyckelord

Single mothers; Labor supply; Childcare; Welfare participation; Structural model; Simulated maximum likelihood; Halton draws

Publikations- och innehållstyp

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