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Cheaper child care, more children

Author

Listed:
  • Mörk, Eva

    () (IFAU - Institute for Labour Market Policy Evaluation)

  • Sjögren, Anna

    () (IFAU - Insitute for Labour Market Policy Evaluation)

  • Svalelryd, Helena

    (IFN)

Abstract

We study the effect of child care costs on the fertility behavior of Swedish women and find that reductions in child care charges influence fertility decisions, even when costs are initially highly subsidized. Exploiting the exogenous variation in child care costs caused by a Swedish child care reform, we are able to identify the causal effect of child care costs on fertility in a context in which child care enrolment is almost universal and the labor force participation of mothers is very high. A typical household planning another child experienced a reduction in expected future child care costs of SEK 106,000 (USD 17,800). This reduction resulted in 3–5 more child births per 1,000 women during an 18 month period, which corresponds to a 4–6 per cent increase in the birth rate.

Suggested Citation

  • Mörk, Eva & Sjögren, Anna & Svalelryd, Helena, 2008. "Cheaper child care, more children," Working Paper Series 2008:29, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  • Handle: RePEc:hhs:ifauwp:2008_029
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    References listed on IDEAS

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    Cited by:

    1. Eva Garcia-Moran & Zoe Kuehn, 2017. "With Strings Attached: Grandparent-Provided Child Care and Female Labor Market Outcomes," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 23, pages 80-98, January.
    2. Albert Solé-Ollé & Pilar Sorribas-Navarro, 2012. "The dynamic adjustment of local government budgets: does Spain behave differently?," Applied Economics, Taylor & Francis Journals, vol. 44(25), pages 3203-3213, September.
    3. Angela Luci & Olivier Thevenon, 2011. "The impact of family policy packages on fertility trends in developed countries," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00657603, HAL.
    4. Helmut Rainer & Stefan Bauernschuster & Wolfgang Auer & Natalia Danzer & Mine Hancioglu & Bastian Hartmann & Timo Hener & Christian Holzner & Notburga Ott & Janina Reinkowski & Martin Werding, 2013. "Kinderbetreuung," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 59, July.
      • Rainer, Helmut & Bauernschuster, Stefan & Auer, Wolfgang & Danzer, Natalia & Hancioglu, Mine & Hartmann, Bastian & Hener, Timo & Holzner, Christian & Ott, Notburga & Reinkowski, Janina & Werding, Mart, . "Kinderbetreuung," Monographs in Economics, University of Munich, Department of Economics, number 20678, November.
    5. Eva Garcia-Moran & Zoe Kuehn, 2012. "With Strings Attached: Grandparent-Provided Child care, Fertility, and Female Labor Market Outcomes," CEPRA working paper 1202, USI Università della Svizzera italiana.
    6. García-Morán, Eva & Kuehn, Zoe, 2012. "With strings attached: Grandparent-provided child care, fertility, and female labor market outcomes," MPRA Paper 37001, University Library of Munich, Germany.
    7. Mohnen, Pierre & Lokshin, Boris, 2009. "What does it take for an R&D tax incentive policy to be effective?," MERIT Working Papers 014, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    8. Lancker, W. van & Ghysels, J., 2011. "GINI DP 10: Who Reaps the Benefits? The social distribution of public childcare in Sweden and Flanders," GINI Discussion Papers 10, AIAS, Amsterdam Institute for Advanced Labour Studies.
    9. Rainald Borck, 2010. "Kinderbetreuung, Fertilität und Frauenerwerbstätigkeit," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 79(3), pages 169-180.
    10. Angela Luci & Olivier Thevenon, 2011. "The impact of family policy packages on fertility trends in developed countries," Working Papers hal-00657603, HAL.
    11. REINSTADLER Anne, 2011. "Luxembourg and France: Comparable Family Benefits, Comparable Fertility Levels?," LISER Working Paper Series 2011-65, LISER.
    12. Boschini, Anne & Håkanson, Christina & Rosén, Åsa & Sjögren, Anna, 2011. "Trading off or having it all? Completed fertility and mid-career earnings of Swedish men and women," Working Paper Series 2011:15, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    13. García-Morán, Eva & Kuehn, Zoe, 2013. "With strings attached: Grandparent-provided child care and female labor market outcomes," MPRA Paper 48953, University Library of Munich, Germany.
    14. Wim Van Lancker & Joris Ghysels, 2011. "Who reaps the benefits? The social distribution of public childcare in Sweden and Flanders," Working Papers 1106, Herman Deleeck Centre for Social Policy, University of Antwerp.

    More about this item

    Keywords

    Child care; Cost of children; Fertility; Quasi-experiment; Difference-in-differences;

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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