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How far can reduced childcare prices push female labour supply?

Author

Listed:
  • Lundin, Daniela
  • Mörk, Eva
  • Öckert, Björn

Abstract

Exploiting exogenous variation in childcare prices stemming from a childcare price reform, this paper estimates effects of reductions in childcare costs on female labour supply. The reform introduced a cap on childcare prices, and lead to considerable reductions in prices depending on family type and region of residence. Since the price is determined by a handful of observed characteristics, we are able to match households that are similar in all relevant aspects, but experienced quite different price changes. Our difference-in-differences regression matching estimates are very precise, and close to zero.

Suggested Citation

  • Lundin, Daniela & Mörk, Eva & Öckert, Björn, 2008. "How far can reduced childcare prices push female labour supply?," Labour Economics, Elsevier, vol. 15(4), pages 647-659, August.
  • Handle: RePEc:eee:labeco:v:15:y:2008:i:4:p:647-659
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    References listed on IDEAS

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    4. Michael Baker & Jonathan Gruber & Kevin Milligan, 2008. "Universal Child Care, Maternal Labor Supply, and Family Well-Being," Journal of Political Economy, University of Chicago Press, vol. 116(4), pages 709-745, August.
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    More about this item

    Keywords

    J21 J13 Labour supply Price of childcare Difference-in-differences regression matching;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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