Child-care quality and fee structure: Effects on labor supply and leisure composition
This paper studies the effects of public child-care subsidies on parental time allocation. We develop a model where parents are allowed to utilize subsidized care during both working and leisure hours. The model distinguishes between subsidies to child-care quality and to fees. Three types of fees are considered: flat, based on time spent in care, and based on parental income. We show that parental time allocation depends on whether quality or fees are subsidized, and also that fee subsidies have di erent e ects depending on the fee structure. We further show that even if a subsidy increases the use of public care, the effect on labor supply may be unclear due to the possibility of using child care also when not working.
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"The Political Economy of Subsidized Day Care,"
93-30, Michigan - Center for Research on Economic & Social Theory.
- Bergstrom, T. & Blomqust, S., 1993. "The Political Econmomy of Subsidized Day Care," Papers 1993-15, Uppsala - Working Paper Series.
- Theodore C. Bergstrom & S�ren Blomquist, . "The Political Economy of Subsidized Day Care," ELSE working papers 015, ESRC Centre on Economics Learning and Social Evolution.
- M. D. R. Evans & Jonathan Kelley, 2002. "Attitudes towards Childcare in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 35(2), pages 188-196.
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7806, National Bureau of Economic Research, Inc.
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"Wages for Women and Publicly Financed Day Care,"
1995-23, Uppsala - Working Paper Series.
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