Can Government Intervention in Childcare be Justified?

Childcare is not like other goods and services. Its inherent nature creates unusual challenges for efficient delivery by the market, while its usage can have social as well as private consequences. Government involvement in childcare may therefore be justified to improve the efficiency of delivery or achieve social objectives, but its effectiveness will depend on whether policy measures can better address the challenges of childcare provision than the market. This article reviews the justification for the recent rapid development of childcare policy in the UK and considers the potential benefits and drawbacks of this growing government intervention.     

Work,Care and Gender during the COVID-19 Crisis*

We explore the effects of the COVID-19 crisis and the associated restrictions to economic activity on paid and unpaid work for men and women in the United Kingdom. Using data from the COVID-19 supplement of Understanding Society, we find evidence that labour market outcomes of men and women were roughly equally affected at the extensive margin, as measured by the incidence of job loss or furloughing. But, if anything, women suffered smaller losses at the intensive margin, experiencing slightly smaller changes in hours and earnings. Within the household, women provided on average a larger share of increased childcare needs, but in an important share of households fathers became the primary childcare providers. These distributional consequences of the pandemic may be important to understand its inequality legacy over the longer term.     

Like a member of the family: including and excluding paid caregivers in performances of family

Abstract

We explore the construction of family in contemporary families that employ professional providers of childcare and elder care. We find that families and caregivers at times construct family together, including the caregiver as a family member, while at other times, consumers construct family in ways that exclude the caregiver. Through our exploration of these various ways of constructing family, we offer three theoretical contributions. First, we challenge traditional distinctions between consumers and producers and highlight the fluid, contextualised nature of family by demonstrating that some contemporary constructions of family include paid service providers. Second, we elucidate the ways in which the provision and consumption of a service, everyday care, produces a liminal position for some service providers. Finally, we develop a broader understanding of the ways in which performances of family protect cultural values.     

Childcare Assistance: Are Subsidies or Tax Credits Better?

We evaluate price subsidies and tax credits for childcare. We focus on partnered women's labour supply, household income and welfare, demand for childcare and government expenditure. Using Australian data, we estimate a joint, discrete structural model of labour supply and childcare demand. We introduce two methodological innovations – a more flexible quantity constraint that total formal and informal childcare hours are at least as large as the mother's labour supply and the explicit inclusion of maternal childcare in the utility function as a proxy for child development. We find that tax credits are more effective than subsidies in terms of increasing average hours worked and household income. However, tax credits disproportionately benefit wealthier and more educated women. Price subsidies, while less efficient, have positive redistributional effects.     

Does Fathers’ Care Spill Over? Evaluating Reforms in the Swedish Parental Leave Program

The aim of reserving months for fathers in the Swedish parental leave system was to increase fathers’ use of leave as well as encourage gender equality in the home and labor market. Using data from the Swedish Social Insurance Agency, this study investigates the effects of the reform – reserving one month of leave for fathers in 1995 and a second month in 2002 – on gender equality in the home. The study uses the take up of the parental benefit for the care for sick children (CFSC) as a proxy for gender equality and follows parents’ use of CFSC for twelve years for the first reform and ten years for the second reform. Results indicate the first reform led to more equal leave sharing, mainly because use of the benefit decreased among mothers with low education, and at least in part fulfilled the aim of increasing gender equality in the home.     

Human resource management implications of dual-career couples

The dual-career couple is a contemporary phenomenon in Western industrialized nations. This Australian qualitative investigation explored the organizational issues associated with dual-career couples from the perspective of both dual-carrer couple members and their employing organizations. Overall, it was found that organizational responsiveness to dual-career issues was limited, and consequently dual-carrer couples themselves were forced to make most of the necessary accommodations. Human resource management implications of the dual-career couple are discussed. To date, however, such implications have been largely ignored by organizations. The findings of this study suggest that the failure of organizations to respond to dual-career issues results in costs, not only to the couple, but also to their employing organizations. Predictions for continued growth of the dual-career phenomenon mean that an organization s willingness to address dual-career issues may become an important element in achieving and retaining competitive advantage.     

Crowding Out Reciprocity between Working Parents and Companies with Corporate Childcare

When the government and companies invest in childcare, both do it with good intentions. While politicians have the intention of enhancing fertility and well‐being of families, employers expect positive responses from working parents based on the norm of reciprocity. Since industrialized countries increase public family support year by year, the question arises as to whether this may trigger unanticipated consequences. If both the state and companies invest in substitutive services, they might unintentionally spark competition. Therefore, the aim of this study is to examine whether public childcare may “crowd out” the reciprocity effects of corporate childcare on working parents. In Switzerland, state family policies vary among the 26 cantons, so we are able to compare cantons with a high and low number of cantonal childcare services. Using survey data taken from 414 working parents living in different Swiss cantons, we examined whether public childcare affects organizational‐related responses of working parents. First, our results support the expected level of reciprocity: working parents in companies with their own childcare services show higher organizational commitment than parents in companies without this support. Second, we find evidence for a crowding‐out effect: in family‐supportive cantons with numerous public childcare services, working parents’ commitment to companies with their own childcare services is lower than in less family‐friendly cantons. This finding reignites an old economic debate on the crowding out of voluntary private investments due to governmental policies. © 2015 Wiley Periodicals, Inc.     

Gender Inequalities in Labor Market Outcomes of Informal Caregivers near Retirement Age in Urban China

ABSTRACT

This study examines the impacts of unpaid family care on labor supply and earnings of women and men near retirement age in urban China. Using the 2011 China Health and Retirement Longitudinal Study (CHARLS) and ordinary least squares (OLS) and instrumental variable approaches, it finds that grandchild care is negatively associated with both women's and men's labor force participation, while there are no effects for eldercare. For women caregivers, caring for grandchildren substantially lowers paid labor hours compared to noncaregivers. No significant relationships are found between eldercare and paid labor hours of women workers. For men workers, neither grandchild care nor eldercare is significantly associated with labor hours. The study also finds no statistically significant relationships between grandchild care and labor earnings for either women or men. Eldercare, however, is positively associated with the earnings of men workers.     

Impact of Childcare and Eldercare on Off‐farm Activities in Rural China

Using individual data collected in rural China and adopting Heckman's two‐step function, we examined the impact of childcare and eldercare on laborers' off‐farm activities. Our study finds that having school‐aged children has a negative impact on rural laborers' migration decisions and a positive impact on their decision to work in the local off‐farm employment market. As grandparents can help to take care of young children, the impact of preschoolers is insignificant. Having elderly family to care for decreases the income earned by female members of the family. Although both men and women are actively engaged in off‐farm employment today in rural China, this study shows that women are still the primary care providers for both children and the elderly. Therefore, reforming public school enrollment and high school/college entrance examination systems so that migrant children can stay with their parents, this will help rural laborers to migrate to cities. The present study also calls for more public services for preschoolers and the elderly in rural China.     

Gender-Equalizing Family Policies and Mothers' Entry into Paid Work: Recent Evidence From Norway

Universal parental leaves with job protection and earnings compensation increase women's labor market attachment, but very long leaves may have negative consequences at both individual and societal levels. Using panel data from the period 1996–2010, we study whether it is possible to offset the potential negative effects on women's labor supply of long parental leaves by policies targeted especially at fathers, and policies making formal daycare cheaper and more easily available. Norway is used as example, since all recent extensions in the parental leave scheme have been reserved for fathers and at the same time the daycare sector has expanded rapidly. We find that Norwegian mothers did enter work faster after childbirth in the late 2000s than a decade earlier. The latest initiatives may thus have contributed to a shortening of women's career interruptions and a more equal division of paid and unpaid work among parents.