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Does providing childcare to unemployed affect unemployment duration?

  • Vikman, Ulrika

    ()

    (Department of Economics, Uppsala University)

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    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.

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    File URL: http://www.ifau.se/upload/pdf/se/2010/wp10-05-Does-providing-childcare-to-unemployed-affect-unemployment-duration.pdf
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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 2010:5.

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    Length: 35 pages
    Date of creation: 06 May 2010
    Date of revision:
    Handle: RePEc:hhs:ifauwp:2010_005
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    1. Nick Carroll, 2006. "Explaining Unemployment Duration in Australia," The Economic Record, The Economic Society of Australia, vol. 82(258), pages 298-314, 09.
    2. 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.
    3. Charles Clotfelter & Elizabeth Glennie & Helen Ladd & Jacob Vigdor, 2006. "Would Higher Salaries Keep Teachers in High-Poverty Schools? Evidence from a Policy Intervention in North Carolina," NBER Working Papers 12285, National Bureau of Economic Research, Inc.
    4. ., 2007. "Labour: The Battle Against Unemployment," Chapters, in: Keynes and his Battles, chapter 7 Edward Elgar.
    5. Arulampalam, Wiji, 2001. "Is Unemployment Really Scarring? Effects of Unemployment Experiences on Wages," Economic Journal, Royal Economic Society, vol. 111(475), pages F585-606, November.
    6. Knut Roed & Tao Zhang, 2003. "Does Unemployment Compensation Affect Unemployment Duration?," Economic Journal, Royal Economic Society, vol. 113(484), pages 190-206, January.
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