THE ECONOMICS OF CHILD CARE AND MARRIED WOMEN'S PARTICIPATION

Abstract

Singapore has no natural resources and is dependent on its people for its growth and progress. However, although women make up about 40% of the labour force, a high rate of working mothers quit their jobs because of child care reasons. Thus, even though there has been a larger increase in the usage of child care centres in the recent years, there is still much concern with the factors that might have caused this increase so that more mothers will be allowed to return to the labour force. The factors in consideration are changes in the nominal wage rate of women, changes in the amount of fees charged at the child care centres and changes in the fertility rate. These factors also include changes in the educational level of women in general as well as changes in the availability of care provided by other child care modes besides child care centres, specifically the presence of the child's grandmother. The Gronau's Model is used to explain the possible effects of these factors on the labour supply of working mothers and their home production time which can be used to provide for child care. In doing so, policy implications can be drawn to encourage more child care centre users so as to retain more mothers in the labour force. In this AE, it is also suggested that the location of the child care centres is essential to the users, especially the lower income workers.