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Do reduced child care prices make parents work more?

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Author Info
Lundin, Daniela () (IFAU - Institute for Labour Market Policy Evaluation)
Mörk, Eva () (IFAU - Institute for Labour Market Policy Evaluation)
Öckert, Björn () (IFAU - Institute for Labour Market Policy Evaluation)

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Abstract

This paper exploits exogenous variation in the price of child care stemming from a major child care price reform, to estimate the effects of child care costs on parents’ labour supply. The reform introduced a cap on the price that local governments could charge parents, and lead to considerable reductions in the price of child care depending on family type and region. Since the price is de-termined by a handful of observed characteristics, we are able to match house-holds that are similar in all relevant aspects, but experienced quite different price changes due to the reform. Our difference-in-differences regression matching estimates are very precise, but mostly close to zero.

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Publisher Info
Paper provided by IFAU - Institute for Labour Market Policy Evaluation in its series Working Paper Series with number 2007:2.

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Length: 51 pages
Date of creation: 08 Feb 2007
Date of revision:
Handle: RePEc:hhs:ifauwp:2007_002

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Related research
Keywords: Labour supply price of child care difference-in-differences regression matching

Other versions of this item:

Find related papers by JEL classification:
J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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References listed on IDEAS
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. Åslund, Olof & Östh, John & Zenou, Yves, 2006. "How Important is Access to Jobs? Old Question - Improved Answer," Working Paper Series 661, Research Institute of Industrial Economics. [Downloadable!]
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  2. de Jong, Philip & Lindeboom, Maarten & van der Klaauw, Bas, 2006. "Screening Disability Insurance Applications," CEPR Discussion Papers 5564, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  3. Anders Forslund & Oskar Nordström Stans, 2006. "Swedish Youth Labour Market Policies Revisited," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 75(3), pages 168-185. [Downloadable!] (restricted)
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  4. Wang, Iris J Y & Carling, Kenneth & Nääs, Ola, 2006. "High school students' summer jobs and their ensuing labour market achievement," Working Paper Series 2006:14, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
  5. Söderström, Martin, 2006. "School choice and student achievement – new evidence on open-enrolment," Working Paper Series 2006:16, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
  6. Bertil Holmlund & Qian Liu & Oskar Nordström Skans, 2006. "Mind the Gap? Estimating the Effects of Postponing Higher Education," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
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  7. Öster, Anna, 2006. "Parental unemployment and children's school performance," Working Paper Series 2006:5, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
  8. Johansson, Kerstin, 2006. "Do labor market flows affect labor-force participation?," Working Paper Series 2006:17, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
  9. Johansson, Per, 2006. "Using internal replication to establish a treatment effect," Working Paper Series 2006:3, IFAU - Institute for Labour Market Policy Evaluation. [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. van den Berg, Gerard, 2007. "An economic analysis of exclusion restrictions for instrumental variable estimation," Working Paper Series 2007:10, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
    Other versions:
  2. Bygren, Magnus & Gähler, Michael, 2007. "The gender gap in workplace authority in Sweden 1968-2000 – a family affair?," Working Paper Series 2007:28, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
  3. Forslund, Anders & Johansson, Kerstin, 2007. "Random and stock-flow models of labour market matching - Swedish evidence," Working Paper Series 2007:11, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
  4. Larsson, Laura & Runeson, Caroline, 2007. "Moral hazard among the sick and unemployed: evidence from a Swedish social insurance reform," Working Paper Series 2007:8, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
  5. Bergemann, Annette & van den Berg, Gerard, 2007. "Active labor market policy effects for women in Europe - a survey," Working Paper Series 2007:3, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
    Other versions:
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