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Child-care quality and fee structure: Effects on labor supply and leisure composition

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Author Info
Brink, Anna () (Department of Economics, School of Economics and Commercial Law, Göteborg University)
Nordblom, Katarina () (Department of Economics, School of Economics and Commercial Law, Göteborg University)

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Abstract

This paper studies the effects of public child-care subsidies on parental time allocation. We develop a model where parents are allowed to utilize subsidized care during both working and leisure hours. The model distinguishes between subsidies to child-care quality and to fees. Three types of fees are considered: flat, based on time spent in care, and based on parental income. We show that parental time allocation depends on whether quality or fees are subsidized, and also that fee subsidies have di erent e ects depending on the fee structure. We further show that even if a subsidy increases the use of public care, the effect on labor supply may be unclear due to the possibility of using child care also when not working.

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File URL: http://hdl.handle.net/2077/2768
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Publisher Info
Paper provided by Göteborg University, Department of Economics in its series Working Papers in Economics with number 157.

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Length: 23 pages
Date of creation: 23 Jan 2005
Date of revision:
Handle: RePEc:hhs:gunwpe:0157

Contact details of provider:
Postal: Department of Economics, School of Business, Economics and Law, Göteborg University Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Related research
Keywords: Public child care; Child-care quality; Child-care fees; Time allocation; Labor supply;

Find related papers by JEL classification:
H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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References listed on IDEAS
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  1. M. D. R. Evans & Jonathan Kelley, 2002. "Attitudes towards Childcare in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 35(2), pages 188-196. [Downloadable!] (restricted)
  2. Ted Bergstrom & Soren Blomquist, 1994. "Political Economy of Subsidized Day Care," Public Economics 9401001, EconWPA. [Downloadable!]
  3. Henry Ohlsson & Michael Lundholm, 1998. "Wages, taxes and publicly provided day care," Journal of Population Economics, Springer, vol. 11(2), pages 185-204. [Downloadable!] (restricted)
  4. David M. Blau, 2000. "Child Care Subsidy Programs," NBER Working Papers 7806, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. Del Boca, Daniela, 2002. "The Effect of Child Care and Part Time Opportunities on Participation and Fertility Decisions in Italy," IZA Discussion Papers 427, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  6. Alan Duncan & Gillian Paull & Jayne Taylor, 2001. "Price and quality in the UK childcare market," IFS Working Papers W01/14, Institute for Fiscal Studies. [Downloadable!]
  7. Bergstrom, Ted & Blomquist, Soren, 1996. "The political economy of subsidized day care," European Journal of Political Economy, Elsevier, vol. 12(3), pages 443-457, November. [Downloadable!] (restricted)
    Other versions:
  8. David M. Blau & Alison P. Hagy, 1998. "The Demand for Quality in Child Care," Journal of Political Economy, University of Chicago Press, vol. 106(1), pages 104-146, February. [Downloadable!] (restricted)
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