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- Title
The Effect of Early Childhood Education and Care (ECE) Costs on the Labour Force Participation of Parents in New Zealand.
- Authors
Kesting, Stefan; Fargher, Scott
- Abstract
New Zealand suffers from labour and skill shortage, has a record low official unemployment rate, one of the highest figures of working hours per capita per annum and at the same time one of the lowest labour force participation rates of women in the 25-34 age group among OECD countries. The feminist economic literature stresses the unfair distribution of paid and unpaid (mostly caring) work between men and women. Moreover, it also emphasizes a strong causal link between childcare arrangements and labour force participation and success. Based on these arguments we suggest that the comparatively low female labour force participation rate of mothers with dependent children in New Zealand can be explained at least in part by how childcare is organized. Evidence from the relevant literature supports this contributing to policy changes. The transaction cost approach is also used to explain the participation patterns for women in the 25-34 year age-group and questions whether provision of childcare should be public or private. In conclusion we suggest a variety of avenues for New Zealand to make better use of its labour force and achieve a more potentially more efficient balance between paid and unpaid activities.
- Subjects
NEW Zealand; EARLY childhood education finance; MEDICAL care costs; CHILD care services; WOMEN employees; LABOR supply; LABOR market
- Publication
New Zealand Journal of Employment Relations, 2008, Vol 33, Issue 3, p16
- ISSN
1176-4716
- Publication type
Article