Abstract
The Family Law' passed by the French Parliament in July 1994 introduced important changes in family policy. Because the number of publicly subsidised childcare places is still very limited, and to encourage families to create employment (by employing childcare workers), the government has chosen to encourage the development of a variety of childcare provisions by increasing the financial incentives payable to parents employing a private nanny or child-minder. The same rationale of reducing unemployment has also prompted the decision to extend existing child rearing benefit to families having a second child. This measure has been very successful in encouraging women to retire from the labour market. The high cost of these changes has been shared by Social Security and the State. However, the changes have contributed to the increased polarisation between higher and lower wages families, with highly qualified mothers, who can afford childcare costs, remaining in paid employment after giving birth, and lower qualified mothers leaving the labour market.