The Effect of a Family Policy Reform on Mother’s Pay: A Natural Experiment Approach
AbstractAll parents in Norway with children aged one to three, who do not attend publicly subsidised day care, are entitled to a cash-for-care (CFC) subsidy. Studies have shown that the reform has reduced mother’s labour supply. In this paper we analyse wage effects of the reform. We put forward a framework for evaluating reforms when reforms are uniformly and equally accessible nation-wide. First, running a simple Difference in differences (DD) analysis, results suggest that the CFC reform has reduced the mother’s wages. However, after controlling for “the age of the child” effect, by running a triple difference approach, we no longer find any evidence of negative wage effects. Copyright Springer Science+Business Media, Inc. 2005
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Bibliographic InfoArticle provided by Springer in its journal Review of Economics of the Household.
Volume (Year): 3 (2005)
Issue (Month): 2 (06)
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Web page: http://www.springerlink.com/link.asp?id=109451
child care; wages; public policy; difference-in-differences-in-differences;
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- Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004.
"How Much Should We Trust Differences-in-Differences Estimates?,"
The Quarterly Journal of Economics,
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"Subsidizing the Stork: New Evidence on Tax Incentives and Fertility,"
NBER Working Papers
8845, National Bureau of Economic Research, Inc.
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