CHILD-CARE COSTS AND THE EMPLOYMENT DECISION OF WOMEN - CANADIAN EVIDENCE

We estimate the joint decision for women with preschool children to en gage in paid employment and to purchase market forms of child care. Th e results confirm those found in most U.S. studies, indicating that ch ild care costs exert a significant negative effect on the labour suppl y of women with children, and on their decision to purchase child care . As well, the expected wage of the mother exerts a significant positi ve impact on both the decision to purchase market forms of child care and the decision to engage in paid employment.