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Benefits of improved access to day care cancelled out by low-pay trap
Research ( Effectiveness of out-of-home day care for disadvantaged families: randomised controlled trial ) published in British Medical Journal 17 October 2003 indicates that mothers from socially disadvantaged families, with access to good day care, are more likely to take up paid work. However, women entering paid employment often experienced a reduction in their entitlement to benefits on increasing their hours of paid work. Mothers' decisions to enter the labour market may not be motivated solely by immediate financial returns, but also by other factors including the need to maximise long-term earning potential, relief from full-time childcare and job satisfaction.
The study was the first randomised controlled trial of the effects of day care to be conducted in the UK.
A summary can be found on the London School of Hygiene and Tropical Medicine website.