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ECON 426 (6)
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Article Summary - Baker et al.

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Department
Economics (Arts)
Course
ECON 426
Professor
Sonya Laszlo
Semester
Fall

Description
Farees Zubair - 260356490 1 ECON 426 – AS 1 SUMMARY Title: Universal child care, maternal labour supply, and family well-being Authors: Baker, M., J. Gruber, and K. Milligan Source: Journal of Political Economy Date: August 2005 Keywords: Maternal Labour Supply, Child Care Main hypotheses/questions: • Impact of prices on child care utilization, elasticities • Whether public financing affects quality or quantity of child care • Child care subsidies in relation to labour supply decisions • Net cost of policy? • Effect on child development and family outcomes? Main results: • “Crowding Out” of informal child care systems • Following introduction of “CPE program”, demand exceeded supply • Quality of publicly financed child care was higher than private alternatives • Higher income families benefited more than low-income families due to $5 policy • Net cost of policy not being met. Taxes earned did not cover subsidies • Negative behavioural consequences for children but positive cognitive effe
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