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Labour supply effects of a cash-for-care subsidy

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Author Info
Pål Schøne ()
Abstract

From 1999, all parents in Norway with children aged one to three, who did not attend publicly subsidised daycare, became eligible for a cash-for-care (CFC) subsidy. One effect of the CFC-subsidy was to increase in the relative price of external child care. This article analyses whether the CFC-subsidy has led to a reduction in the labour supply of mothers. A framework for evaluating policy reforms when reforms are equally and nation-wide accessible is put forward. The results show that the CFC-subsidy has reduced women’s labour supply. The results are sustained after controlling for contemporaneous macroeconomic shocks, using a triple difference approach. Copyright Springer-Verlag 2004

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File URL: http://hdl.handle.net/10.1007/s00148-003-0176-8
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Publisher Info
Article provided by Springer in its journal Population Economics.

Volume (Year): 17 (2004)
Issue (Month): 4 (December)
Pages: 703-727
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Handle: RePEc:spr:jopoec:v:17:y:2004:i:4:p:703-727

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Related research
Keywords: J13; J18; J22; Labour supply; child care; difference-in-differences-in-differences;

Cited by:
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  1. Pierre Lefebvre & Philip Merrigan, 2005. "Low-fee ($5/day/child) Regulated Childcare Policy and the Labor Supply of Mothers with Young Children: A Natural Experiment from Canada / La politique des services de garde à 5 $/jour et l’offre de," CIRANO Working Papers 2005s-08, CIRANO. [Downloadable!]
  2. Pierre Lefebvre & Philip Merrigan, 2005. "The Québec’s Experiment of $5 per Day per Child Childcare Policy and Mother’s Labour Supply: Evidence Based on the Five Cycles of the NLSCY," CIRANO Project Reports 2005rp-21, CIRANO. [Downloadable!]
  3. Pierre Lefebvre & Philip Merrigan & Matthieu Verstraete, 2008. "Dynamic Labour Supply Effects of Childcare Subsidies: Evidence from a Canadian Natural Experiment on Low-Fee Universal Child Care," Cahiers de recherche 0824, CIRPEE. [Downloadable!]
Statistics
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This page was last updated on 2009-11-25.

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