A Forgotten Issue: Distributional Effects of Day Care Subsidies in Germany
AbstractIn general child care subsidies are widely accepted as a means to create equal chances for mothers in the labour market as well as for children. Although there is a general consensus that the use of child care should be publicly supported, there is no consensus on how this should be done. Moreover, there is little knowledge on the distributional effects of child care subsidies. In order to assess whether public expenditures are targeted efficiently, it is, however, vital to know which social groups profit most from the public expenditures on children’s day care and if tax-payers money is spent effectively. In Germany, as in other European countries, child care subsidies are mainly provided ‘in-kind’. Local communities and NPOs provide child care slots for children, which are – except for a small fee - free of charge. In this study we estimate the distributional effects of state funded child day care in Germany using microdata of households and data on the expenditure of public funded child care. Major results are that child care subsidies only carry modest redistributional effects. In the first place, it is the middle income range that profits from the public provision of children’s day care. This contradicts common public policy recommendations, which state that low income families should be the first target of child care subsidies.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 198.
Length: 28 pages
Date of creation: Sep 2000
Date of revision:
Publication status: published in: European Early Childhood Education Research Journal, 2003, 11 (2), 159-175
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Other versions of this item:
- Spiess, C. Katharina & Kreyenfeld, Michaela & Wagner, Gert G., 2003. "A Forgotten Issue: Distributional Effects of Day Care Subsidies in Germany," EconStor Open Access Articles, ZBW - German National Library of Economics.
- Michaela Kreyenfeld & C. Katharina Spieß & Gert G. Wagner, 2000. "A Forgotten Issue: Distributional Effects of Day Care Subsidies in Germany," Discussion Papers of DIW Berlin 226, DIW Berlin, German Institute for Economic Research.
- D1 - Microeconomics - - Household Behavior
- D3 - Microeconomics - - Distribution
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
- H4 - Public Economics - - Publicly Provided Goods
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.:
- David M. Blau, 2000.
"Child Care Subsidy Programs,"
NBER Working Papers
7806, National Bureau of Economic Research, Inc.
- Siv Gustafsson & Frank Stafford, 1992. "Child Care Subsidies and Labor Supply in Sweden," Journal of Human Resources, University of Wisconsin Press, vol. 27(1), pages 204-230.
- World Bank, 2007. "Chile - County Gender Assessment : Expanding Women's Work Choices to Enhance Chile's Economic Potential," World Bank Other Operational Studies 7639, The World Bank.
- Marcus Dittrich & Wolfgang Gerstenberger & Beate Grundig & Gunther Markwardt & Carsten Pohl & Heinz Schmalholz & Marcel Thum, 2004. "Demographische Entwicklung im Freistaat Sachsen : Analyse und Strategien zum Bevölkerungsrückgang auf dem Arbeitsmarkt ; Gutachten im Auftrag der Sächsischen Staatskanzlei," ifo Dresden Studien, Ifo Institute for Economic Research at the University of Munich, number 36, October.
- Joris Ghysels & Wim Van Lancker, 2010. "The unequal benefits of family activation: an analysis of the social distribution of family policy among families with young children," Working Papers 1008, Herman Deleeck Centre for Social Policy, University of Antwerp.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.