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

Brink, Anna; Nordblom, Katarina; Wahlberg, Roger

doi:10.1007/s10797-007-9030-3

“…The results seem to suggest modest responses if at all. While a decline in childcare prices has little effect on female labor supply in Sweden (Lundin et al 2008;Brink et al 2007), low-income mothers in the United States show a modest response with estimated elasticities ranging from -0.1 to -0.3 (Blau and Tekin 2007).…”

Section: Related Literaturementioning

confidence: 99%

Taxing Childcare: Effects on Childcare Choices, Family Labor Supply, and Children

Gathmann

¹

,

Sass

²

2018

Journal of Labor Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in SOEPpapers on Multidisciplinary Panel Data Research at DIW BerlinThis series presents research findings based either directly on data from the German SocioEconomic Panel study (SOEP) or using SOEP data as part of an internationally comparable data set (e.g. CNEF, ECHP, LIS, LWS, CHER/PACO). SOEP is a truly multidisciplinary household panel study covering a wide range of social and behavioral sciences: economics, sociology, psychology, survey methodology, econometrics and applied statistics, educational science, political science, public health, behavioral genetics, demography, geography, and sport science.The decision to publish a submission in SOEPpapers is made by a board of editors chosen by the DIW Berlin to represent the wide range of disciplines covered by SOEP. There is no external referee process and papers are either accepted or rejected without revision. Papers appear in this series as works in progress and may also appear elsewhere. They often represent preliminary studies and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be requested from the author directly.Any opinions expressed in this series are those of the author(s) and not those of DIW Berlin.Research disseminated by DIW Berlin may include views on public policy issues, but the institute itself takes no institutional policy positions. Abstract Previous studies report a range of estimates for the response of female labor supply and childcare attendance to childcare prices. We shed new light on these questions using a policy reform that raises the price of public daycare. After the reform, children are 8 percentage points less likely to attend public daycare which implies a compensated price elasticity of -0.6. There is little labor supply response in the full sample, though declines for vulnerable subgroups. Spillover effects on older siblings and fertility decisions show that the policy affects the whole household, not just targeted family members.Acknowledgments: We thank Iwan

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“…Complex budget constraints have motivated scholars to model labor supply as a discrete choice, where utility-maximizing individuals choose between a limited number of hours levels; see for instance Van Soest (1995), Aaberge et al (1995), Dagsvik and Strøm (2006) and the review by Creedy and Kalb (2005). Examples of structural discrete choice models for joint labor supply and childcare choices are Ribar (1995) and Brink et al (2007), see also Blau and Hagy (1998), Michalopoulos and Robins (2000) and Powell (2002) for discrete choice models in joint childcare and labor supply decision frameworks.…”

Section: Features Of the Australian And Norwegian Modelsmentioning

confidence: 99%

“…The Australian framework is based on a unitary household utility, similar to Brink et al (2007), assuming that couple families maximize one utility function, a quadratic utility function in this case, subject to a time constraint for each adult l i ? h i = T and a standard household budget constraint:…”

Section: Features Of the Australian And Norwegian Modelsmentioning

confidence: 99%

A comparison of family policy designs of Australia and Norway using microsimulation models

Kalb

¹

,

Thoresen

²

2009

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“…In addition, we contribute to a small literature analyzing reforms of childcare subsidies and labor supply in Europe (see Schøne (2004) and Kornstad and Thoresen (2007) for Norway; Piketty (2005) for France; and Lundin et al (2008) and Brink et al (2007) for Sweden). These reforms were all implemented at the national level, which makes it difficult to disentangle the impact of the reform from other aggregate changes.…”

mentioning

confidence: 99%

Taxing Childcare: Effects on Family Labor Supply and Children

Gathmann

¹

,

Sass

²

2012

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Taxing Childcare: Effects on Family Labor Supply and Children Abstract Previous studies report a wide range of estimates for how female labor supply responds to childcare prices. We shed new light on this question using a reform that raised the prices of public daycare. Parents respond by reducing public daycare and increasing childcare at home. Parents also reduce informal childcare indicating that public daycare and informal childcare are complements. Female labor force participation declines and the response is strongest for single parents and low-income households. The short-run effects on cognitive and noncognitive skills are mixed, but negative for girls. Spillover effects on older siblings suggest that the policy affects the whole household, not just targeted family members. JEL-Code: J130, J220, J180. Terms of use: Documents inKeywords: childcare, labor supply, cognitive skills, family policy, Germany. Christina Gathmann Department of Economics

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

Cited by 41 publications

References 34 publications

Taxing Childcare: Effects on Childcare Choices, Family Labor Supply, and Children

Taxing Childcare: Effects on Childcare Choices, Family Labor Supply, and Children

A comparison of family policy designs of Australia and Norway using microsimulation models

Taxing Childcare: Effects on Family Labor Supply and Children

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