1. Mothers’ labour market participation and use of childcare in the UK
Mike Brewer
Institute for Fiscal Studies

2. Outline Mothers’ labour market participation
Based on Brewer and Paull (2006), DWP RR 308.
Trends in childcare use in the UK
Based on Brewer and Shaw (2004), DWP WP 16.
Government policy and childcare

3. I. Mothers’ labour market participation
Women with young children less likely to work than woman with older children
Having children has a dramatic impact on women’s labour market participation (and hours of work, wage)
Most women go back to work eventually, but not necessarily permanently
School entry also a critical time, with relative high numbers of mothers stopping and starting work
Based on Brewer and Paull (2006), DWP RR 308.

4. Women with young children are less likely to work than those with older children...
Source: Derived from FRS 2005/6. Sample: women with children under 14.

5. ...because having children has a dramatic impact on women’s labour market behaviour.
Source: Fig 5.1 of Brewer and Paull (2006), DWP RR 308. Sample is all adults with children. Derived from BHPS and FACS, so covers children born

6. Most women go back to work eventually, but not necessarily permanently.
Source: adapted from Fig 5.9 of Brewer and Paull (2006), DWP RR 308. Sample is all women who have a birth. Derived from BHPS and FACS, so covers children born

7. I. Mothers’ labour market participation
Women with young children less likely to work than woman with older children
Having children has a dramatic impact on women’s labour market participation (and hours of work, wage)
Most women go back to work eventually, but not necessarily permanently
School entry also a critical time, with relative high numbers of mothers stopping and starting work

8. II. Trends in employment and childcare use
No good source of data for all children that is consistent over time
4 large household surveys (FRS, FACS, LFS, Childcare and EY Provision) but each has problems, and generally not consistent with each other.
Why?
Perspectives on childcare vary across government and over time
Parents have range of ways of thinking about “childcare” (which may be different from policy-makers or survey designer) (Brewer and Shaw (2004), DWP WP 16)
Childcare or early year’s education?
After-school activity or Ofsted-registered After-School Club
Informal care
Recent convergence on questions
ask about instances where child not at (full-time) school nor in parents’ care

9. Employment and childcare use: summary
Employment rate still rising amongst lone parents, but not amongst mothers in couples
Amongst working families
Since 2001, little trend in overall use of childcare
Longer trend may be for formal care to replace informal
Little change in % who pay for care, but rise in amount paid
Limited data on price shows real rises between 2001 and

10. Trends in mothers’ labour market participation
Source: Own calculations from FRS and LFS, various years. Sample is all families with children under 14.

11. Trends in childcare use amongst working families
Source: Own calculations plus Brewer and Shaw (2004), DWP WP 16. Sample is working lone parent families and couples where the mother works all with children under 14. Data from FRS collected all year round, LFS in October and November. FRS 2005/6 not consistent with previous years of FRS and therefore shown separately.

12. Trends in formal childcare use amongst working families
Source: Own calculations plus Brewer and Shaw (2004), DWP WP 16. Sample is working lone parent families and couples where the mother works all with children under 14. Data from FRS collected all year round, LFS in October and November. FRS 2005/6 not consistent with previous years of FRS and therefore shown separately.

13. Trends in informal childcare use amongst working families
Source: Own calculations plus Brewer and Shaw (2004), DWP WP 16. Sample is working lone parent families and couples where the mother works all with children under 14. Data from FRS collected all year round, LFS in October and November. FRS 2005/6 not consistent with previous years of FRS and therefore shown separately.

14. Trends in formal childcare (including EYE) use amongst under 5s in working families
Source: Own calculations plus Brewer and Shaw (2004), DWP WP 16. Sample is under 5s in a working family. Data from FRS collected all year round, LFS in October and November. FRS 2005/6 not consistent with previous years of FRS and therefore shown separately.

15. Trends in formal childcare use amongst school-age children in working families
Source: Own calculations plus Brewer and Shaw (2004), DWP WP 16. Sample is children aged 5-14 in a working family. Data from FRS collected all year round, LFS in October and November. FRS 2005/6 not consistent with previous years of FRS and therefore shown separately.

16. Do parents pay for childcare?
Source: Own calculations plus Brewer and Shaw (2004), DWP WP 16. Sample is working lone parent families and couples where the mother works all with children under 14. Data from FRS collected all year round. FRS 2005/6 not consistent with previous years of FRS and therefore shown separately.

17. What do parents pay for childcare?
Source: Own calculations plus Table 3.11 of Brewer and Shaw (2004), DWP WP 16 & Table 5.20 of Bryson et al (2006), DfES RR 723. FRS, FACS and PDFC sample is working lone parent families and couples where the mother works all with children under 14 and who paid for childcare. FRS, FACS and PDFC measure mean spending per hour per child; C&EY survey measures median cost of childcare per hour per child including contributions from others prices.

18. III. Government policy and childcare
Economic case for supporting childcare
Gains to childcare long-term and/or go beyond the family
“Quality” needs regulating
Pure market approach may not be equitable
Goals for this Government
Childcare for children’s benefit
Childcare to help parents balance work and family
(10 Year Strategy, December 2004)
Main interventions follow this divide:
Free nursery places for 3 and 4 year olds (c£3bn)
Childcare tax credit (c£1.3bn in 2007/8) for working parents and means-tested

19. Policy questions
Increase quality or improve affordability or substantially increase subsidies ?
Make subsidies less or more conditional on parents working?
Make subsidies less or more related to family income?
Direct support to providers or parents?

20. End