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Do reduced child care prices make parents work more?

  • Lundin, Daniela

    (IFAU - Institute for Labour Market Policy Evaluation)

  • Mörk, Eva

    ()

    (IFAU - Institute for Labour Market Policy Evaluation)

  • Öckert, Björn

    ()

    (IFAU - Institute for Labour Market Policy Evaluation)

This paper exploits exogenous variation in the price of child care stemming from a major child care price reform, to estimate the effects of child care costs on parents’ labour supply. The reform introduced a cap on the price that local governments could charge parents, and lead to considerable reductions in the price of child care depending on family type and region. Since the price is de-termined by a handful of observed characteristics, we are able to match house-holds that are similar in all relevant aspects, but experienced quite different price changes due to the reform. Our difference-in-differences regression matching estimates are very precise, but mostly close to zero.

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Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2007:2.

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Length: 51 pages
Date of creation: 08 Feb 2007
Date of revision:
Handle: RePEc:hhs:ifauwp:2007_002
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  1. Söderström, Martin, 2006. "School choice and student achievement – new evidence on open-enrolment," Working Paper Series 2006:16, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  2. Bertil Holmlund & Qian Liu & Oskar Nordström Skans, 2008. "Mind the gap? Estimating the effects of postponing higher education," Oxford Economic Papers, Oxford University Press, vol. 60(4), pages 683-710, October.
  3. Johansson, Kerstin, 2006. "Do labor market flows affect labor-force participation?," Working Paper Series 2006:17, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  4. Anders Forslund & Oskar Nordström Stans, 2006. "Swedish Youth Labour Market Policies Revisited," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 75(3), pages 168-185.
  5. Olof Åslund & John Östh & Yves Zenou, 2010. "How important is access to jobs? Old question--improved answer," Journal of Economic Geography, Oxford University Press, vol. 10(3), pages 389-422, May.
  6. Johansson, Per, 2006. "Using internal replication to establish a treatment effect," Working Paper Series 2006:3, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  7. de Jong, Philip & Lindeboom, Maarten & van der Klaauw, Bas, 2006. "Screening Disability Insurance Applications," CEPR Discussion Papers 5564, C.E.P.R. Discussion Papers.
  8. Öster, Anna, 2006. "Parental unemployment and children's school performance," Working Paper Series 2006:5, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  9. Wang, Iris J Y & Carling, Kenneth & Nääs, Ola, 2006. "High school students' summer jobs and their ensuing labour market achievement," Working Paper Series 2006:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
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