, Volume 34, Issue 3, pp 296-313
Date: 04 Sep 2012

The Role of Economic Incentives and Attitudes in Participation and Childcare Decisions

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Abstract

We analyzed the participation and childcare decisions made by mothers in two-parent households with children aged 0–12 in the Netherlands, paying special attention to the role of attitudes regarding work and care. In a multinomial logit model we distinguished between not working, a small part-time job, and a larger job. For working mothers we considered no childcare, informal, and formal childcare. We accounted for potential endogeneity of attitudes. The results showed that the role of the price of formal childcare in the decision-making process was negligible. A higher earnings capacity increased the take-up of larger jobs and formal childcare. Modern attitudes had a strong impact on the decisions to work and to use childcare.