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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Brink, Anna & Nordblom, Katarina, 2005. "Child-care quality and fee structure: Effects on labor supply and leisure composition," Working Papers in Economics 157, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0157
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    File URL: http://hdl.handle.net/2077/2768
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    References listed on IDEAS

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    1. Henry Ohlsson & Michael Lundholm, 1998. "Wages, taxes and publicly provided day care," Journal of Population Economics, Springer;European Society for Population Economics, vol. 11(2), pages 185-204.
    2. Daniela Del Boca, 2002. "The effect of child care and part time opportunities on participation and fertility decisions in Italy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(3), pages 549-573.
    3. 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.
    4. 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.
    5. Alison P. Hagy, 1998. "The Demand for Child Care Quality: An Hedonic Price Theory Approach," Journal of Human Resources, University of Wisconsin Press, vol. 33(3), pages 683-710.
    6. 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, June.
    7. David Blau, 2003. "Child Care Subsidy Programs," NBER Chapters, in: Means-Tested Transfer Programs in the United States, pages 443-516, National Bureau of Economic Research, Inc.
    8. Alan Duncan & Gillian Paull & Jayne Taylor, 2001. "Price and quality in the UK childcare market," IFS Working Papers W01/14, Institute for Fiscal Studies.
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    Cited by:

    1. Junichi Minagawa & Thorsten Upmann, 2006. "Labor Supply and the Demand for Child Care: An Intertemporal Approach," CESifo Working Paper Series 1819, CESifo.
    2. Minagawa Junichi & Upmann Thorsten, 2014. "A Single Parent’s Labor Supply: Evaluating Different Child Care Fees within an Intertemporal Framework," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 14(1), pages 1-39, January.

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    More about this item

    Keywords

    Public child care; Child-care quality; Child-care fees; Time allocation; Labor supply;
    All these keywords.

    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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