Working Paper: CEPR ID: DP600
Authors: Heather Joshi; Hugh Davies
Abstract: Patterns of female employment participation are compared in a variety of European countries with differing levels of child care provision. The earnings forgone over a lifetime by a woman bearing children (compared with the earnings of her childless counterpart) are simulated for four countries, using estimated parameters for the effects of participation, hours worked and wages. Western Germany and the United Kingdom each have larger earnings `losses' than France and Sweden, where there is also more out-of-home provision for children of and below school age. The effect on mothers' lifetime earnings of various hypothetical extensions of child care in the UK is simulated.
Keywords: opportunity cost; childbearing; child care; comparisons; federal republic of germany; france; sweden; united kingdom
JEL Codes: J13; J16; J17
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| availability of subsidized child care facilities (J13) | higher female employment rates (J21) |
| higher provisions of child care (J13) | increased employment (J68) |
| extensive public daycare (H49) | continuous employment over childbearing (J13) |
| child care provision (J13) | employment trajectories of mothers (J22) |
| hypothetical expansion of child care facilities in the UK (J13) | significant increases in lifetime earnings (J17) |