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The Excess Demand for Subsidized Child Care in Germany

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Author Info
Katharina Wrohlich

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Abstract

The extension of subsidized child care is currently on the top of the political agenda in Germany. In this paper the excess demand for subsidized child care slots is estimated using a partial observability model in the style of Abowd and Farber (1982). The results show that more than 50 percent of children aged 0-3 are queuing for child care slots, whereas only 10 percent of children aged 4-6 years are queuing. For children in the younger age group about 255,000 child care slots are missing. This number comes close to the government's plan to expand subsidized child care by 230,000 slots.

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Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 470.

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Length: 20 p.
Date of creation: 2005
Date of revision:
Publication status: Published in: Applied Economics 40 (2007) 10, 1217-1228
Handle: RePEc:diw:diwwpp:dp470

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Related research
Keywords: Child care; Excess demand; Partial observability model;

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Find related papers by JEL classification:
J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

References listed on IDEAS
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  1. Bridget G. Hiedemann & Jutta M. Joesch, 2002. "The demand for nonrelative child care among families with infants and toddlers: A double-hurdle approach," Journal of Population Economics, Springer, vol. 15(3), pages 495-526. [Downloadable!] (restricted)
  2. Lokshin, Michael M., 1999. "Household childcare choices and women's work behavior in Russia," Policy Research Working Paper Series 2206, The World Bank. [Downloadable!]
    Other versions:
  3. Tom Kornstad and Thor O. Thoresen, 2002. "A Discrete Choice Model for Labor Supply and Child Care," Discussion Papers 315, Research Department of Statistics Norway. [Downloadable!]
  4. Poirier, Dale J., 1980. "Partial observability in bivariate probit models," Journal of Econometrics, Elsevier, vol. 12(2), pages 209-217, February. [Downloadable!] (restricted)
  5. John M. Abowd & Henry S. Farber, 1982. "Job queues and the union status of workers," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 35(3), pages 354-367, April.
  6. Katharina Wrohlich, 2004. "Child Care Costs and Mothers’ Labor Supply: An Empirical Analysis for Germany," Discussion Papers of DIW Berlin 412, DIW Berlin, German Institute for Economic Research. [Downloadable!]
  7. Del Boca, Daniela & Locatelli, Marilena & Vuri, Daniela, 2004. "Child Care Choices by Italian Households," IZA Discussion Papers 983, Institute for the Study of Labor (IZA). [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. C. Spiess & Katharina Wrohlich, 2008. "The Parental Leave Benefit Reform in Germany: Costs and Labour Market Outcomes of Moving towards the Nordic Model," Population Research and Policy Review, Springer, vol. 27(5), pages 575-591, October. [Downloadable!] (restricted)
  2. Helene Dearing & Helmut Hofer & Christine Lietz & Rudolf Winter-Ebmer & Katharina Wrohlich, 2007. "Why are mothers working longer hours in Austria than in Germany? A comparative micro simulation analysis," Economics working papers 2007-11, Department of Economics, Johannes Kepler University Linz, Austria. [Downloadable!]
    Other versions:
  3. Haan, Peter & Wrohlich, Katharina, 2009. "Can Child Care Policy Encourage Employment and Fertility? Evidence from a Structural Model," IZA Discussion Papers 4503, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Anna Brink & Katarina Nordblom & Roger Wahlberg, 2007. "Maximum Fee vs. Child Benefit: A Welfare Analysis of Swedish Child-Care Fee Reform," IZA Discussion Papers 2748, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  5. Peter Haan, 2005. "State Dependence and Female Labor Supply in Germany: The Extensive and the Intensive Margin," Discussion Papers of DIW Berlin 538, DIW Berlin, German Institute for Economic Research. [Downloadable!]
  6. Katharina Wrohlich, 2006. "Labor Supply and Child Care Choices in a Rationed Child Care Market," IZA Discussion Papers 2053, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  7. C. Katharina Spiess & Katharina Wrohlich, 2006. "The Parental Leave Benefit Reform in Germany: Costs and Labour Market Outcomes of Moving towards the Scandinavian Model," IZA Discussion Papers 2372, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  8. Mendez, Ildefonso, 2008. "Intergenerational Time Transfers and Internal Migration: Accounting for Low Spatial Mobility in Southern Europe," MPRA Paper 8654, University Library of Munich, Germany. [Downloadable!]
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