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The Excess Demand for Subsidized Child Care in Germany

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  • Katharina Wrohlich

Abstract

The extension of subsidized child care is currently on the top of the political agenda in Germany. In this paper the excess demand for subsidized child care slots is estimated using a partial observability model in the style of Abowd and Farber (1982). The results show that more than 50 percent of children aged 0-3 are queuing for child care slots, whereas only 10 percent of children aged 4-6 years are queuing. For children in the younger age group about 255,000 child care slots are missing. This number comes close to the government's plan to expand subsidized child care by 230,000 slots.

Suggested Citation

  • Katharina Wrohlich, 2005. "The Excess Demand for Subsidized Child Care in Germany," Discussion Papers of DIW Berlin 470, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp470
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    More about this item

    Keywords

    Child care; Excess demand; Partial observability model;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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