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Childcare Costs and the Demand for Children - Evidence from a Nationwide Reform

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Listed:
  • Eva Mörk
  • Anna Sjögren
  • Helena Svaleryd
  • Eva Maria Mörk

Abstract

Exploiting the exogenous variation in childcare costs 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 the labor force participation of mothers is very high. Anticipation of a reduction in childcare costs increased the number of first births, but only seemed to affect the timing of second births. We find a negative income effect for families with children already enrolled in child care.

Suggested Citation

  • Eva Mörk & Anna Sjögren & Helena Svaleryd & Eva Maria Mörk, 2010. "Childcare Costs and the Demand for Children - Evidence from a Nationwide Reform," CESifo Working Paper Series 3210, CESifo.
    • Handle: RePEc:ces:ceswps:_3210
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    More about this item

    Keywords

    childcare; cost of children; fertility; quasi-experiment; difference-in-differences;
    All these keywords.

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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