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|
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- Daniela Del Boca, 2002.
"The effect of child care and part time opportunities on participation and fertility decisions in Italy,"
Journal of Population Economics,
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Journal of Population Economics,
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