Research Paper CEPR Discussion Paper Series 4357

Part-time employment traps and childcare policy

Authors

Publication date

2004

Abstract

We model educational investment, wages and employment status (full-time, part-time or non-participation) in a frictional world in which heterogeneous workers have different productivities, both at home and in the workplace. We investigate the degree to which there might be under-employment and distortions in human capital investment, and we then show how childcare policy can be used not only to correct the ex post under-participation problem but also to provide efficient incentives to invest optimally ex ante in education.

Subjects

Human Capital, Labour Economics, and Childbearing: Fertility

Links

http://ideas.repec.org/p/cpr/ceprdp/4357.html

Notes

discussion paper

#513252