THE SUPPLY OF CHILD-CARE LABOR

This article presents estimates of the elasticity of supply of labor t o child care. This parameter is an important determinant of the effect s of child care subsidies and regulations on the cost of child care. U sing data from the Current Population Survey, there is evidence of an elasticity in the range of 1.2-1.9. This implies that the majority of the benefits of child care subsidies accrue to consumers of child care . It is also consistent with the fact that child care workers' wages r emained flat in real terms in recent years, despite rapid growth in th e demand for child care.