DP4357 Part-Time Employment Traps and Childcare Policy
|Author(s):||Alison L Booth, Melvyn G Coles|
|Publication Date:||April 2004|
|Keyword(s):||childcare, education, full-time, market failure, part-time|
|JEL(s):||H24, J13, J24, J31, J42|
|Programme Areas:||Labour Economics|
|Link to this Page:||www.cepr.org/active/publications/discussion_papers/dp.php?dpno=4357|
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.