Working Paper Series
IFAU - Institute for Evaluation of Labour Market and Education Policy
Daniela Lundin, Eva Mörk
Do reduced child care prices make parents work more?
() and Björn Öckert
Abstract: This paper exploits exogenous variation in the price of
child care stemming from a major child care price reform, to estimate the
effects of child care costs on parents’ labour supply. The reform
introduced a cap on the price that local governments could charge parents,
and lead to considerable reductions in the price of child care depending on
family type and region. Since the price is de-termined by a handful of
observed characteristics, we are able to match house-holds that are similar
in all relevant aspects, but experienced quite different price changes due
to the reform. Our difference-in-differences regression matching estimates
are very precise, but mostly close to zero.
Keywords: Labour supply; price of child care; difference-in-differences regression matching; (follow links to similar papers)
JEL-Codes: J13; J21; (follow links to similar papers)
51 pages, February 8, 2007
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