A STRUCTURAL MODEL OF CHILD-CARE AND THE LABOR SUPPLY OF MARRIED-WOMEN

This article empirically examines married women's labor supply and chi ld care expenditures. The article uses winter 1984-85 data from the Su rvey of Income and Program Participation to estimate a fully structura l econometric model of labor supply and paid care utilization, Estimat ion results indicate that the cost of paid care has small negative eff ects on labor supply but stronger negative effects on paid care utiliz ation. Consequently, subsidy programs such as the Child and Dependent Care Tax Credit appear to have few effects on married mothers' employm ent.