Child care workers' wages: New evidence on returns to education, experience, job tenure and auspice

Abstract

Child care workers receive low hourly pay, modest returns to education, experience and job tenure, and have high rates of turnover. These stylized facts have caused analysts to characterize child care workers as secondary labour market participants. We use Canadian data to challenge this characterization and to examine the disputed effects of auspice (non-profit vs. for-profit status) on wages. In contrast to Mocan and Viola (1997), improved controls for the differential availability of resources and firm size do not make the positive wage effects experienced by workers in non-profit day care centres disappear.