Discussion Paper Details

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Title: Part-Time Employment Traps and Childcare Policy

Author(s): Alison L Booth and Melvyn G Coles

Publication Date: April 2004

Keyword(s): childcare, education, full-time, market failure and part-time

Programme Area(s): Labour Economics

Abstract: We model educational investment, wages and employment status (full-time, part-time or non-participation) in a frictional world in which heterogeneous workers have different productivities, both at home and in the workplace. We investigate the degree to which there might be under-employment and distortions in human capital investment, and we then show how childcare policy can be used not only to correct the ex post under-participation problem but also to provide efficient incentives to invest optimally ex ante in education.

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Bibliographic Reference

Booth, A and Coles, M. 2004. 'Part-Time Employment Traps and Childcare Policy'. London, Centre for Economic Policy Research.