Daycare Subsidies and Labor Supply in Sweden
AbstractThis paper utilizes data from a Swedish household survey for 1984 (The HUS data) in combination with data on public daycare fees and spaces per child by community. We argue that the subsidy rate and availability of spaces determined by the political leaders of the community is to a large extent exogenous to the household. The joint out-of-home childcare and labor supply decision is analyzed by logit choice models. We find that the high quality public daycare in Sweden encourages labor market activity of women with preschoolers even when spouse's income is high and that when spaces are not rationed a lower price encourages use.
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Bibliographic InfoPaper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 221.
Length: 41 pages
Date of creation: Aug 1989
Date of revision:
Contact details of provider:
Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
Phone: +46 8 665 4500
Fax: +46 8 665 4599
Web page: http://www.ifn.se/
More information through EDIRC
Childcare subsidies; labour supply; community provision of services;
Other versions of this item:
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
- H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
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.:
- Blomquist, N. Soren, 1983. "The effect of income taxation on the labor supply of married men in Sweden," Journal of Public Economics, Elsevier, vol. 22(2), pages 169-197, November.
- Becker, Gary S & Lewis, H Gregg, 1973. "On the Interaction between the Quantity and Quality of Children," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages S279-88, Part II, .
- Edwin van Gameren & Ingrid Ooms, 2009. "Childcare and labor force participation in the Netherlands: the importance of attitudes and opinions," Review of Economics of the Household, Springer, vol. 7(4), pages 395-421, December.
- Dora L. Costa, 2000.
"From Mill Town to Board Room: The Rise of Women's Paid Labor,"
Journal of Economic Perspectives,
American Economic Association, vol. 14(4), pages 101-122, Fall.
- Dora L. Costa, 2000. "From Mill Town to Board Room: The Rise of Women's Paid Labor," NBER Working Papers 7608, National Bureau of Economic Research, Inc.
- Klevmarken, Anders, 1989. "Modelling Labor Supply in a Dynamic Economy," Working Paper Series 247, Research Institute of Industrial Economics.
- Connelly R & Degraff DS & Levison D, 1991. "Child care policy and women's market work in urban Brazil," ILO Working Papers 285802, International Labour Organization.
- Karen Mason & Karen Kuhlthau, 1992. "The perceived impact of child care costs on women’s labor supply and fertility," Demography, Springer, vol. 29(4), pages 523-543, November.
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