HAVING A SECOND CHILD AND ACCESS TO CHILDCARE: EVIDENCE FROM EUROPEAN COUNTRIES. (8th May 2017)

• Record Type: Journal Article
• Authors: d'Albis, Hippolyte; Gobbi, Paula E.; Greulich, Angela
• Is Part Of: Journal of demographic economics. Volume 83:Number 2(2017)
• Page Start: 177
• Page End: 210
• Publication Date: 2017-05-08
• Subjects: childcare, -- education, -- fertility, -- female employment; J11, -- J13, -- J16, -- 011; Demography -- Economic aspects -- Periodicals; Population -- Economic aspects -- Periodicals; 304.605
• DOI: 10.1017/dem.2017.2
• Languages: English
• ISSNs: 2054-0892

Abstract

Abstract: This paper shows that differences in fertility across European countries mainly emerge due to fewer women having two children in low-fertility countries. It further suggests that childcare services are an important determinant for the transition to a second child to occur. The theoretical framework we propose suggests that (i) in countries where childcare coverage is low, there is a U-shaped relationship between a couple's probability of having a second child and the woman's potential wage, whereas (ii) in countries with easy access to childcare, this probability is positively related with the woman's potential wage. Data from the European Union Statistics on Income and Living Conditions (EU-SILC) confirm these implications when estimating a woman's probability of having a second child as a function of education. This implies that middle-income women are the most affected ones by the lack of access to formal and subsidized childcare.