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The Excess Demand for Subsidized Child Care in Germany

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Author Info

  • Katharina Wrohlich

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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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.42875.de/dp470.pdf
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Bibliographic Info

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

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References

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  1. 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.
  2. Poirier, Dale J., 1980. "Partial observability in bivariate probit models," Journal of Econometrics, Elsevier, vol. 12(2), pages 209-217, February.
  3. 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.
  4. John M. Abowd & Henry S. Farber, 1982. "Job queues and the union status of workers," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 35(3), pages 354-367, April.
  5. Michael Lokshin, 2004. "Household Childcare Choices and Women’s Work Behavior in Russia," Journal of Human Resources, University of Wisconsin Press, vol. 39(4).
  6. 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).
  7. Tom Kornstad & Thor O. Thoresen, 2002. "A Discrete Choice Model for Labor Supply and Child Care," Discussion Papers 315, Research Department of Statistics Norway.
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