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.
|Date of creation:||23 Jan 2005|
|Contact details of provider:|| Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden|
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- Alan Duncan & Gillian Paull & Jayne Taylor, 2001. "Price and quality in the UK childcare market," IFS Working Papers W01/14, Institute for Fiscal Studies.
- Daniela Del Boca, 2002. "The effect of child care and part time opportunities on participation and fertility decisions in Italy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(3), pages 549-573.
- Theodore C. Bergstrom & Sören Blomquist, "undated".
"The Political Economy of Subsidized Day Care,"
ELSE working papers
015, ESRC Centre on Economics Learning and Social Evolution.
- Ted Bergstrom & Soren Blomquist, 1994.
"The Political Economy of Publicly Supplied Day Care,"
_034, University of Michigan, Department of Economics.
- Henry Ohlsson & Michael Lundholm, 1998. "Wages, taxes and publicly provided day care," Journal of Population Economics, Springer;European Society for Population Economics, vol. 11(2), pages 185-204.
- David M. Blau, 2000.
"Child Care Subsidy Programs,"
NBER Working Papers
7806, National Bureau of Economic Research, Inc.
- Del Boca, Daniela, 2002. "The Effect of Child Care and Part Time Opportunities on Participation and Fertility Decisions in Italy," IZA Discussion Papers 427, Institute for the Study of Labor (IZA).
- 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.
- David M. Blau & Alison P. Hagy, 1998. "The Demand for Quality in Child Care," Journal of Political Economy, University of Chicago Press, vol. 106(1), pages 104-146, February.
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