Working Papers in Economics
No 157:
Child-care quality and fee structure: Effects on labor supply and leisure composition
Anna Brink ()
and Katarina Nordblom ()
Abstract: This paper studies the effects of public child-care
subsidies on parental time allocation. We develop a model where parents are
allowed to utilize subsidized care during both working and leisure hours.
The model distinguishes between subsidies to child-care quality and to
fees. Three types of fees are considered: flat, based on time spent in
care, and based on parental income. We show that parental time allocation
depends on whether quality or fees are subsidized, and also that fee
subsidies have di erent e ects depending on the fee structure. We further
show that even if a subsidy increases the use of public care, the effect on
labor supply may be unclear due to the possibility of using child care also
when not working.
Keywords: Public child care; Child-care quality; Child-care fees; Time allocation; Labor supply; (follow links to similar papers)
JEL-Codes: H42; J13; J22; (follow links to similar papers)
23 pages, January 23, 2005
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