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Childcare costs and the demand for children—evidence from a nationwide reform

  • Eva Mörk


  • Anna Sjögren
  • Helena Svaleryd

Exploiting the exogenous variation in user fees caused by a Swedish childcare reform, we are able to identify the causal effect of childcare costs on fertility in a context in which childcare enrollment is almost universal, user fees are low, and labor force participation of mothers is very high. Anticipation of a reduction in childcare costs increased the number of first and higher-order births, but only seemed to affect the timing of second births. For families with many children we also find a marginally significant negative income effect on fertility. Copyright Springer-Verlag 2013

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Article provided by Springer in its journal Journal of Population Economics.

Volume (Year): 26 (2013)
Issue (Month): 1 (January)
Pages: 33-65

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Handle: RePEc:spr:jopoec:v:26:y:2013:i:1:p:33-65
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