The joint decision of female labour supply and childcare in Italy under costs and availability constraints

Authors

Francesco Figari, Edlira Narazani

Publication Date

Mar 2017

Abstract

It is widely recognized that childcare has important pedagogical, economic and social effects on both children and parents. This paper is the first attempt to estimate a joint structural model of female labour supply and childcare behaviour applied to Italy in order to analyse the effects of relaxing the existing constraints in terms of childcare availability and costs by considering public, private and informal childcare. Results suggest that Italian households might alter their childcare and labour supply behaviours substantially if the coverage rate of formal childcare increases to reach the European targets. Overall, increasing child care coverage is estimated to be more effective in enhancing labour incentives than decreasing existing child care costs, at the same budgetary cost.

Publication type

EUROMOD Working Paper Series

Series Number

EM2/17

Research areas

Family and gender, Population changes and labour market dynamics, Tax and benefit systems

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