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Childcare costs and the demand for children—evidence from a nationwide reform

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  • Eva Mörk
  • Anna Sjögren
  • Helena Svaleryd

Abstract

Exploiting the exogenous variation in user fees caused by a Swedish childcare reform, we are able to identify the causal effect of childcare costs on fertility in a context in which childcare enrollment is almost universal, user fees are low, and labor force participation of mothers is very high. Anticipation of a reduction in childcare costs increased the number of first and higher-order births, but only seemed to affect the timing of second births. For families with many children we also find a marginally significant negative income effect on fertility. Copyright Springer-Verlag 2013

Suggested Citation

  • Eva Mörk & Anna Sjögren & Helena Svaleryd, 2013. "Childcare costs and the demand for children—evidence from a nationwide reform," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(1), pages 33-65, January.
    • Handle: RePEc:spr:jopoec:v:26:y:2013:i:1:p:33-65
    DOI: 10.1007/s00148-011-0399-z
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    More about this item

    Keywords

    Childcare cost; Fertility; Quasi-experiment; H31; J13;
    All these keywords.

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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