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Employment protection and parental child care

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  • Olsson, Martin

    () (Research Institute of Industrial Economics (IFN))

Abstract

I examine if employment protection affects parental childcare. I find that a softer employment protection has a substantial effect on how parents use and divide paid childcare between them. The identification relies on a reform that made it easier for employers in Sweden to dismiss workers in small firms. I estimate that a softer employment protection reduces the total days of parental childcare in targeted firms, measured as total days of parental leave or temporary parental leave. Both a sorting effect and a behavioral effect can explain the reduced childcare. I also find evidence of a redistribution effect of paid parental childcare within households if only one partner was affected by the reform. I interpret the redistribution effect as a way of evading an external cost on the child.

Suggested Citation

  • Olsson, Martin, 2013. "Employment protection and parental child care," Working Paper Series 2013:2, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  • Handle: RePEc:hhs:ifauwp:2013_002
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    References listed on IDEAS

    as
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    Cited by:

    1. Bjuggren, Carl Magnus, 2013. "The Effect of Employment Protection Rules on Firm Productivity - A Natural Experiment," HUI Working Papers 82, HUI Research, revised 30 Oct 2013.
    2. Boye, Katarina, 2014. "Can you stay at home today? The relationship between economic dependence, parents’ occupation and care leave for sick children," Working Paper Series 2014:4, IFAU - Institute for Evaluation of Labour Market and Education Policy.

    More about this item

    Keywords

    Employment protection; parental childcare; within family distribution;

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics

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