Children, Labour Supply and Child Care: Challenges for Empirical Analysis

The aim of this article is to give an overview of the important issues relating to the labour supply of the primary carer in a household. Child care plays a central role in allowing the primary carer time away from the young children in a household. Therefore, child-care use is a central topic of this article, as well. There are a number of different aspects to child care, such as the price, quality, availability and type of service. This article discusses the analytical problems and challenges, taking Australian data, policy and experience as a focus, but drawing on a wide range of international empirical studies. It reports the results from previous research on child-care use and labour supply and it outlines the areas requiring more study. The focus of the article is on economic research.