Project: Research project

Project Details


The goal of the proposed research project is to gain an understanding of
the role of government subsidies to child care in explaining recent changes
in fertility and employment patterns in the United States. To accomplish
this goal, a theoretical and empirical analysis of the dynamic effects of
market child care costs on fertility, labor force participation, and child
care use will be carried out. The analysis will be based on a hazard rate
model approach and will be estimated using continuous time longitudinal
labor force data and birth histories. Three features of the proposed
analysis represent advances over previous studies in this area: (1) The
joint analysis of the effects of child care costs on fertility, labor
supply, and child care use proposed here has not been undertaken before,
and is important for an understanding of the full consequences of
government subsidies to child care; (2) The dynamic, hazard rate approach
to studying fertility and labor supply decisions proposed here intergrates
previous separate dynamic analyses of fertility and labor supply and
represents the first attempt to trace the impact of child care costs on the
timing of fertility and labor force participation decisions; (3) The
measures of child care costs to be used in the proposed study include both
site-specific average costs for different types of child care and measures
of subsidy rates provided under a variety of government programs. These
cost measures are more comprehensive than those used in previous studies. The empirical analysis will be performed with data from the Employment
Opportunity Pilot Projects baseline household survey, which provides
continuous employment histories over a period of up to 22 months, birth
dates, child care use and a wealth of other information on a sample of
almost 30,000 families. The analysis will yield results that can serve as
a guide to understanding the possible effects of future changes in
government child care policy.
Effective start/end date5/1/857/31/92


  • National Institutes of Health
  • National Institutes of Health
  • National Institutes of Health
  • National Institutes of Health: $75,675.00


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