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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. Åslund, Olof & Östh, John & Zenou, Yves, 2006. "How Important is Access to Jobs? Old Question - Improved Answer," Working Paper Series 661, Research Institute of Industrial Economics.
  2. Bertil Holmlund & Qian Liu & Oskar Nordström Skans, 2006. "Mind the Gap? Estimating the Effects of Postponing Higher Education," CESifo Working Paper Series 1792, CESifo Group Munich.
  3. Forslund, Anders & Nordström Skans, Oskar, 2006. "Swedish youth labour market policies revisited," Working Paper Series 2006:6, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  4. Philip de Jong & Maarten Lindeboom & Bas van der Klaauw, 2011. "Screening Disability Insurance Applications," Journal of the European Economic Association, European Economic Association, vol. 9(1), pages 106-129, 02.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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.
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