Cost of Childcare and Female Employment in the UK

Mothers of young children may be prevented from working because of the high cost of available, formal childcare. In the UK, the typical cost of a nursery place is more than the average household spends a year on either food or housing. This study examines the extent to which female labour force participation is affected by the cost of formal childcare. The results suggest that childcare price subsidies have a modest impact both on labour force participation and on the use of formal childcare