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The mismatch between employment and child care in Italy: the impact of rationing |
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| Authors: | Daniela Del Boca |
| Affiliation: | (1) Department of Economics, University of Turin, Via Po 53, 10124 Turin, Italy;(2) SEFEMEQ Department, Faculty of Economics, University of Rome “Tor Vergata”, via Columbia 2, 00133 Rome, Italy;(3) CESifo, Munich, Germany;(4) Collegio Carlo Alberto, Via Real Collegio 30, 10024 Moncalieri, Italy;(5) CHILD, Turin, Italy;(6) IZA, Bonn, Germany |
| Abstract: | In Italy the women’s participation is among the lowest in Europe. The female employment rate stands almost 13 percentage points below the EU average and 22 below the Lisbon target. One of the most important reasons is related to the characteristics of child care system. We analyze the characteristics of the child care system in Italy and its relationship to the labor market participation decision of mothers. The two decisions are jointly considered in a discrete choice framework, which also allows for simple forms of rationing. We go on to estimate a bivariate probit model of the child care and employment decisions and find evidence that rationing is an important factor in interpreting price effects on utilization rates and employment decisions. Responsible editors: Deborah Cobb-Clark & Tito Boeri |
| Keywords: | Labor market decisions Fertility Child care |
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