Females' Willingness to Work and the Discouragement Effect of a Poor Local Childcare Provision

Abstract

We analyze the effects of regional structures on females’ willingness to work as well as onthe probability that non-employed women who are willing to work actually will engage in jobsearch. Special permission was granted to link regional data to individual respondents in theGerman Socio-Economic Panel (SOEP). Results of a bivariate probit model correcting forsample selection show that high regional unemployment discourages women from enteringthe labor market. Further, findings indicate that women with young children are willing towork, but that women with young children and mothers who are unhappy with the regionalchildcare provision are the least likely to look for a job. These findings indicate that highinstitutional and spatial barriers discourage mothers from entering employment.

Keywords: bivariate probit model, female labor supply, job search, regional labor markets, childcare provision

JEL Classification: R23, J13, J64