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Daycare Subsidies and Labor Supply in Sweden

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Author Info

  • Gustafsson, Siv

    (Arbetslivscentrum)

  • Stafford, Frank

    (University of Michigan)

Abstract

This 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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File URL: http://www.ifn.se/wfiles/wp/wp221.pdf
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Bibliographic Info

Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 221.

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Length: 41 pages
Date of creation: Aug 1989
Date of revision:
Handle: RePEc:hhs:iuiwop:0221

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Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
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Fax: +46 8 665 4599
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Web page: http://www.ifn.se/
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Related research

Keywords: Childcare subsidies; labour supply; community provision of services;

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References

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  1. 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.
  2. 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, .
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Citations

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Cited by:
  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. Klevmarken, Anders, 1989. "Modelling Labor Supply in a Dynamic Economy," Working Paper Series 247, Research Institute of Industrial Economics.

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