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Daycare Subsidies and Labor Supply in Sweden

Author

Listed:
  • 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.

Suggested Citation

  • Gustafsson, Siv & Stafford, Frank, 1989. "Daycare Subsidies and Labor Supply in Sweden," Working Paper Series 221, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0221
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    References listed on IDEAS

    as
    1. Gary S. Becker & H. Gregg Lewis, 1974. "Interaction between Quantity and Quality of Children," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 81-90, National Bureau of Economic Research, Inc.
    2. 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.
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    Cited by:

    1. Francis Teal, 1992. "The Use and Cost of Child Care in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 25(1), pages 3-14, January.
    2. Klevmarken, Anders, 1989. "Modelling Labor Supply in a Dynamic Economy," Working Paper Series 247, Research Institute of Industrial Economics.
    3. Rachel Connelly & Jean Kimmel, 2003. "The Effect of Child Care Costs on the Employment and Welfare Recipiency of Single Mothers," Southern Economic Journal, John Wiley & Sons, vol. 69(3), pages 498-519, January.
    4. Connelly, Rachel & DeGraff, Deborah S & Levison, Deborah, 1996. "Women's Employment and Child Care in Brazil," Economic Development and Cultural Change, University of Chicago Press, vol. 44(3), pages 619-656, April.
    5. Henz, Ursula & Sundström, Marianne, 2001. "Partner Choice and Women's Paid Work in Sweden - The Role of Earnings," Working Paper Series 1/2000, Stockholm University, Swedish Institute for Social Research.
    6. repec:ilo:ilowps:285802 is not listed on IDEAS
    7. 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.
    8. 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.
    9. Karen Mason & Karen Kuhlthau, 1992. "The perceived impact of child care costs on women’s labor supply and fertility," Demography, Springer;Population Association of America (PAA), vol. 29(4), pages 523-543, November.

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    More about this item

    Keywords

    Childcare subsidies; labour supply; community provision of services;
    All these keywords.

    JEL classification:

    • 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

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