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Does providing childcare to unemployed affect unemployment duration?

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  • Vikman, Ulrika

    () (Department of Economics, Uppsala University)

Abstract

This paper examines if the probability of leaving unemployment changes for unemployed parents with young children when childcare is available. To investigate this, I use the heterogeneity among Swedish municipalities before the implementation of a 2001 Swedish childcare reform making it mandatory for municipalities to offer child¬care to unemployed parents for at least 15 hours per week. In the study difference-in-differences and difference-in-difference-in-differences methods are used. The results indicate a positive effect on the probability of leaving unemployment for mothers when childcare is available, but no effect is found for fathers. For mothers, some heterogeneous effects are also found, with a greater effect on the probability of leaving unemployment for work when childcare is available for mothers with only compulsory schooling or university education and mothers with two children.

Suggested Citation

  • Vikman, Ulrika, 2010. "Does providing childcare to unemployed affect unemployment duration?," Working Paper Series 2010:5, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  • Handle: RePEc:hhs:ifauwp:2010_005
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    References listed on IDEAS

    as
    1. Nick Carroll, 2006. "Explaining Unemployment Duration in Australia," The Economic Record, The Economic Society of Australia, pages 298-314.
    2. Clotfelter, Charles & Glennie, Elizabeth & Ladd, Helen & Vigdor, Jacob, 2008. "Would higher salaries keep teachers in high-poverty schools? Evidence from a policy intervention in North Carolina," Journal of Public Economics, Elsevier, pages 1352-1370.
    3. Helge Bennmarker & Kenneth Carling & Bertil Holmlund, 2007. "Do Benefit Hikes Damage Job Finding? Evidence from Swedish Unemployment Insurance Reforms," LABOUR, CEIS, vol. 21(1), pages 85-120, March.
    4. Van den Berg, Gerard J., 2001. "Duration models: specification, identification and multiple durations," Handbook of Econometrics,in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 55, pages 3381-3460 Elsevier.
    5. Arulampalam, Wiji, 2001. "Is Unemployment Really Scarring? Effects of Unemployment Experiences on Wages," Economic Journal, Royal Economic Society, vol. 111(475), pages 585-606, November.
    6. Lundin, Daniela & Mörk, Eva & Öckert, Björn, 2008. "How far can reduced childcare prices push female labour supply?," Labour Economics, Elsevier, vol. 15(4), pages 647-659, August.
    7. Clotfelter, Charles & Glennie, Elizabeth & Ladd, Helen & Vigdor, Jacob, 2008. "Would higher salaries keep teachers in high-poverty schools? Evidence from a policy intervention in North Carolina," Journal of Public Economics, Elsevier, pages 1352-1370.
    8. Knut Roed & Tao Zhang, 2003. "Does Unemployment Compensation Affect Unemployment Duration?," Economic Journal, Royal Economic Society, vol. 113(484), pages 190-206, January.
    9. ., 2007. "Labour: The Battle Against Unemployment," Chapters,in: Keynes and his Battles, chapter 7 Edward Elgar Publishing.
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Offering childcare to unemployed actually helps
      by Economic Logician in Economic Logic on 2010-07-20 19:34:00

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    Cited by:

    1. Norén, Anna, 2015. "Childcare and the division of parental leave," Working Paper Series 2015:24, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    2. Francesca Carta & Lucia Rizzica, 2016. "Female employment and pre-kindergarten: On the unintended effects of an Italian reform Abstract: We theoretically show that when mothers need to buy childcare services not only if they work but also i," Working Papers 091, "Carlo F. Dondena" Centre for Research on Social Dynamics (DONDENA), Università Commerciale Luigi Bocconi.
    3. Vikman, Ulrika, 2013. "Paid parental leave to immigrants: An obstacle to labor market entrance?," Working Paper Series 2013:4, IFAU - Institute for Evaluation of Labour Market and Education Policy.

    More about this item

    Keywords

    Unemployment duration; childcare;

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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