Could more childcare increase labour supply?
The following OECD assessment and recommendations summarise Chapter 5 of the Economic Survey of the United Kingdom 2005 published on 12 October 2005. What is the economic rationale for public support for childcare? Changes in family structures and attitudes with more women wanting to pursue a career make availability of flexible and affordable childcare essential for reconciling work and family life. Male and female employment rates have reached 79% and 70% respectively, but many women work part time. At the same time, a more polarised family structure has emerged with many jobless households, which reinforces the risk of social deprivation being passed on from one generation to the next. Only a third of lone mothers with children under 5 are employed. Access to childcare is an important element in any package of measures to address this problem, in particular for lone parents. Raising public subsidies for childcare and out of school hours care is warranted because earnings potential o
