Effects of Family Policy Reforms in Norway: Results from a Joint Labour Supply and Childcare Choice Microsimulation Analysis*

Kornstad, Tom; Thoresen, Thor Olav

doi:10.1111/j.1467-8578.2006.00038.x

Cited by 29 publications

(31 citation statements)

References 37 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…However, this may produce biased estimates as it could introduce spurious differences in wage distributions across the two groups. 15 Kornstad and Thoresen (2006) who also assume a fixed link between hours worked and hours in child care find that for 80% of the Norwegian households studied, the fixed link is satisfied. 16 In municipalities with time differentiated fees, there are typically only a few time alternatives, so this approximation should not lead too far away from the true fees.…”

Section: Datamentioning

confidence: 93%

“…They all suggest that reduced rationing has a stronger impact on labor supply than further reduced fees. An exception is a Norwegian study by Kornstad and Thoresen (2006), showing that fee reductions would increase labor supply of married mothers more than abolished queues. Lundin et al (2007) find almost no effects on married and cohabiting mothers' labor supply from the Swedish maximum fee reform.…”

Section: Introductionmentioning

confidence: 91%

“…6 van Soest (1995), Aaberge et al (1995Aaberge et al ( , 1999, Flood et al (2004), Kornstad and Thoresen (2006), and Wrohlich (2007), are some previous labor supply applications. 7 Flood and Islam (2005) show that a discrete choice model produces results similar to those obtained from a continuous model.…”

Section: Economic Model and Empirical Specificationmentioning

confidence: 99%

“…andKornstad and Thoresen (2006) for alternative ways of estimating welfare effects in stochastic models.…”

mentioning

confidence: 99%

See 3 more Smart Citations

Maximum fee versus child benefit: a welfare analysis of Swedish child-care fee reform

Brink

Nordblom

Wahlberg

2007

Int Tax Public Finance

View full text Add to dashboard Cite

The effects of a recent Swedish child-care fee reform are compared with those of an alternative reform, increased child benefits. The fee reform implied considerably decreased fees and was intended to increase both labor supply among parents and their economic well-being. We estimate labor supply effects using a discrete choice labor supply model, and simulate behavioral responses to the changes. We find positive, but small, effects on labor supply from reduced fees, while increased child benefits would make single mothers decrease their labor supply. On the other hand, increased child benefits would make income distribution more equal. We make a social welfare comparison and conclude that for plausible values of inequality aversion, the alternative reform would have been preferred to the implemented fee reform. Copyright Springer Science+Business Media, LLC 2007Labor supply, Redistribution, Reform, Child care, Fees, Child benefit, H31, I38, J22,

show abstract

Section: Datamentioning

confidence: 93%

Section: Introductionmentioning

confidence: 91%

Section: Economic Model and Empirical Specificationmentioning

confidence: 99%

“…andKornstad and Thoresen (2006) for alternative ways of estimating welfare effects in stochastic models.…”

mentioning

confidence: 99%

See 2 more Smart Citations

Maximum fee versus child benefit: a welfare analysis of Swedish child-care fee reform

Brink

Nordblom

Wahlberg

2007

Int Tax Public Finance

View full text Add to dashboard Cite

show abstract

“…They are more flexible working hours, support for families with young children, and equal tax treatment for married and single women. Empirical studies have shown that these policies can result in an increase in female labor force participation (Del Boca 2002;Euwals 2001;Jaumotte 2003;Kornstad and Thoresen 2006;Lefebvre, Merrigan, and Verstraete 2009;Smith et al 2003). The demand-side policy of enforcing anti-sex discrimination laws could also help.…”

Section: Discussionmentioning

confidence: 99%

Quantifying policy tradeoffs to support aging populations

Scherbov¹,

Sanderson²,

Mamolo³

2014

DemRes

View full text Add to dashboard Cite

BACKGROUNDCoping with aging populations is a challenge for most developed countries. Supporting non-working adults can create an unsustainable burden on those working. One way of dealing with this is to raise the normal pension age, but this has proven unpopular. A complementary approach is to raise the average labor force participation rate. These policies are generally more politically palatable because they often remove barriers, allowing people who would like to work to do so. OBJECTIVETo conceptualize and estimate the trade-off between pension age and labor force participation rate policies. METHODWe project the populations of European countries and apply different levels of labor force participation rates to the projected populations. We introduce the notion of a relative burden, which is the ratio of the fraction of the income of people in the labor market in 2050 that they transfer to adults out of the labor market to the same fraction in 2009. We use this indicator to investigate the trade-offs between changes in normal pension ages and the general level of labor force participation rates. RESULTSWe show that, in most European countries, a difference in policies that results in an increase in average labor force participation rates by an additional one to two percentage points by 2050 can substitute for a one-year increase in the normal pension age. This is important because, in many European countries, without additional increases in labor force participation rates, normal pension ages would have to be raised well above 68 by 2050 to keep the burden on those working manageable. CONCLUSIONBecause of anticipated increases in life expectancy and health at older ages as well as because of financial necessity, some mix of increases in pension ages and in labor force participation rates will be needed. Pension age changes by themselves will not be sufficient.

show abstract