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The Excess Demand for Subsidized Child Care in Germany

  • Wrohlich, Katharina

    ()

    (DIW Berlin)

The extension of subsidized child care is currently on top of the political agenda in Germany. In this paper the excess demand for subsidized child care slots is estimated using a partial observability model in the style of Abowd and Farber (1982). The results show that more than 50 percent of children aged 0-3 are queuing for child care slots, whereas only 10 percent of children aged 4-6 years are queuing. For children in the younger age group who have working mothers, about 255,000 child care slots are missing. This number comes close to the government’s plan to expand subsidized child care by 230,000 slots.

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File URL: http://ftp.iza.org/dp1515.pdf
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1515.

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Length: 24 pages
Date of creation: Mar 2005
Date of revision:
Handle: RePEc:iza:izadps:dp1515
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  1. Tom Kornstad & Thor Thoresen, 2007. "A discrete choice model for labor supply and childcare," Journal of Population Economics, Springer, vol. 20(4), pages 781-803, October.
  2. Bridget G. Hiedemann & Jutta M. Joesch, 2002. "The demand for nonrelative child care among families with infants and toddlers: A double-hurdle approach," Journal of Population Economics, Springer, vol. 15(3), pages 495-526.
  3. Lokshin, Michael M., 1999. "Household childcare choices and women's work behavior in Russia," Policy Research Working Paper Series 2206, The World Bank.
  4. Katharina Wrohlich, 2004. "Child Care Costs and Mothers' Labor Supply: An Empirical Analysis for Germany," Discussion Papers of DIW Berlin 412, DIW Berlin, German Institute for Economic Research.
  5. Poirier, Dale J., 1980. "Partial observability in bivariate probit models," Journal of Econometrics, Elsevier, vol. 12(2), pages 209-217, February.
  6. Del Boca, Daniela & Locatelli, Marilena & Vuri, Daniela, 2004. "Child Care Choices by Italian Households," IZA Discussion Papers 983, Institute for the Study of Labor (IZA).
  7. John M. Abowd & Henry S. Farber, 1982. "Job queues and the union status of workers," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 35(3), pages 354-367, April.
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