Fertility decisions and alternative types of childcare Updated

Relative costs and family characteristics determine the effectiveness of different forms of childcare

University of Turin and Collegio Carlo Alberto, Italy, and IZA, Germany

University of Florence and Turin, Italy

University of Turin, Italy

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Discurso de ascensor

Increasing population age and low fertility rates, which characterize most modern societies, compromise the balance between people who can participate in the labor market and people who need care. This is a demographic and social issue that is likely to grow in importance for future generations. It is therefore crucial to understand what factors can positively influence fertility decisions. Policies related to the availability and costs of different kinds of childcare (e.g. formal care, grandparents, childminders) should be considered after an evaluation of their effects on the probability of women having children.

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Pros

Increased availability of formal childcare is associated with higher fertility rates, particularly for first births.

Reducing childcare costs can significantly boost fertility rates by making child-rearing more affordable.

Grandparents play a crucial role in childcare, positively influencing both maternal employment and fertility.

Formal childcare is associated with positive effects on children’s cognitive and non-cognitive development, supporting its promotion.

The availability of immigrant childminders can increase fertility among highly educated women by reducing childcare burdens.

Contras

Maintaining high-quality formal childcare is expensive, which can limit its availability and accessibility.

Variation across different geographic contexts makes the relationship between childcare availability and fertility ambiguous.

The lack of comprehensive data on the availability and costs of childminders makes it difficult to assess their impact on fertility decisions.

The reliance on grandparents for childcare introduces significant endogeneity problems, as the decision to use grandparents’ care is often internally determined within families.

Better childcare availability may lead women to work more, which could paradoxically reduce their likelihood of having more children.

Mensaje principal de los autores

The availability of low-cost childcare should reduce the cost of child rearing and therefore have a positive effect on fertility. Indeed, there is empirical evidence that shows a positive link between childcare availability and prices and families’ fertility decisions. However, some types of childcare are accessible only to certain families due to relatively high costs (e.g. childminders or private formal care) or because of family characteristics (e.g. proximity to and age of grandparents). It is therefore important to expand childcare possibilities to all parents via publicly funded childcare.

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