We estimate a model of the decision by mothers of young children to use paid child care services and to work (participation and working hours: half-time, 80%, full-time), using French microeconomic data. Our research suggests that the cost of child care influences the use of paid child care services but has little effect on women’s decision to work. Abolishing the parental education allowance (APE) would increase the rate of use of paid child care services by two points and the female employment rate by four points for married couples with at least one child under three years of age. Part-time working for women is highly sensitive to the financial incentives of the APE.
Keywords
- female labour supply
- child care
- effects of government policy