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Childcare voucher and labour market behaviour: Experimental evidence from Finland

Author

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  • Tarja Viitanen

    (Department of Economics, The University of Sheffield)

Abstract

This article provides experimental estimates of the impact of a voucher for private care on labour force participation and use of private and public child care within the Nordic system of universal provision of public care. In a market that was providing high-quality, low-cost public child care, a voucher is nevertheless found to have a significant, positive effect for the use of private child care with zero effects on either use of public care or labour force participation. The use of private increased by five percentage points in the whole country and by five to seven percentage points in areas that suffer from excess demand for child care as a result of the introduction of the private child care voucher.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Tarja Viitanen, 2007. "Childcare voucher and labour market behaviour: Experimental evidence from Finland," Working Papers 2007011, The University of Sheffield, Department of Economics, revised Aug 2007.
  • Handle: RePEc:shf:wpaper:2007011
    as

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    File URL: http://www.shef.ac.uk/content/1/c6/07/46/28/SERP2007011.pdf
    File Function: First version, 2007
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    File URL: http://www.shef.ac.uk/content/1/c6/07/46/28/SERP2007011.pdf
    File Function: Revised version, 2007
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    References listed on IDEAS

    as
    1. Philip Hemmings & David Turner & Seija Parviainen, 2003. "Enhancing the Effectiveness of Public Spending in Finland," OECD Economics Department Working Papers 358, OECD Publishing.
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    3. Arleen Leibowitz & Linda Waite & Christina Witsberger, 1988. "Child care for preschoolers: Differences by child’s age," Demography, Springer;Population Association of America (PAA), vol. 25(2), pages 205-220, May.
    4. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
    5. Epple, Dennis & Romano, Richard E, 1996. "Public Provision of Private Goods," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 57-84, February.
    6. Ghazala Naz, 2004. "The impact of cash-benefit reform on parents’ labour force participation," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(2), pages 369-383, June.
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    8. Alberto Abadie & Guido W. Imbens, 2002. "Simple and Bias-Corrected Matching Estimators for Average Treatment Effects," NBER Technical Working Papers 0283, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Helmut Mahringer & Christine Zulehner, 2015. "Child-care costs and mothers’ employment rates: an empirical analysis for Austria," Review of Economics of the Household, Springer, vol. 13(4), pages 837-870, December.
    2. BOUSSELIN Audrey, 2019. "Expanding access to universal childcare: Effects on childcare arrangements and maternal employment," LISER Working Paper Series 2019-11, LISER.
    3. Taryn W. Morrissey, 2017. "Child care and parent labor force participation: a review of the research literature," Review of Economics of the Household, Springer, vol. 15(1), pages 1-24, March.
    4. Kosonen Tuomas, 2014. "To Work or Not to Work? The Effect of Childcare Subsidies on the Labour Supply of Parents," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(3), pages 1-32, July.

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    More about this item

    Keywords

    Social experimentation; vouchers; childcare use; labour force participation;
    All these keywords.

    JEL classification:

    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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