Non-Parental Childcare Services and Time Allocation of Mothers with Young Children in China

Abstract

This study explores the impact of access to and affordability of paid and unpaid childcare services on the time allocation of mothers with children ages 0–6. The study employs a fixed-effect seemingly unrelated regression model on longitudinal data from the China Health and Nutrition Survey for 2004–11, when women’s employment in China was declining rapidly. The study finds that holding constant other determinants, doubling daily wages of nannies and tuition fees of childcare centers tends to reduce a mother’s market work time by 5.2 and 1.3 h per week and increases her time spent on housework by 1.7 and 0.5 h per week, respectively. Mothers who live with an older, woman relative spend 5.5 h fewer per week on childcare. Access to local childcare centers reduces mothers’ time spent on childcare by 13.3 h per week, and these mothers’ wage rates have no effect on their time allocation. HIGHLIGHTS In China, rising parenting costs contribute to declines in women’s labor participation rate and the fertility rate. Increasing prices of childcare services reduce mother’s time on paid work and increase time on housework. Access to childcare has no impact on mothers’ time on activities beyond childcare. The government should subsidize early childhood education as it subsidizes elementary education. Childcare leave and flexible work arrangements may alleviate mothers’ time burdens.