Household Labour Supply in Sri Lanka for Urban Young Couple with Pre-school Children

Abstract

This research note focuses on the labour supply decision in Sri Lanka of parents with the presence of pre-school children. For this study, 200 households with at least one pre-school child were surveyed. Women’s non-market time does not depend on their husband’s wage; but both housework and child care of other adults—particularly female adults—respond positively to an increase in the wife’s labour force participation. The decision to buy formal child care is affected by the age of children, cost of day-care centres, household income, types of occupation and level of education and quality of child care. Quality child-care services increase female labour force participation. Moreover, if child care is more affordable, more mothers would participate in the labour force. Governments can embrace this argument.

Keywords

JEL: J13 JEL: J14 JEL: J22 JEL: D01 Labour supply unitary model collective model child care female labour household labour decision

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