Umeå Economic Studies,
Umeå University, Department of Economics

Abstract: This paper analyses whether the fathers matter for the number of hours that their children spend in subsidized child care. More explicitly, we estimate two non-nested models of child care demand in Sweden. The dual care taker model allows both parents' labour supplies to vary and includes several personal characteristics of the father as well as for the mother. The single care taker model follows earlier research and assumes that the father's labour supply is fixed and exogenous to the family's child care demand. The parameter estimates indicate that several of the father's characteristics are associated with the time his child spends in child care. J-tests and bootstrap J-tests are performed to compare the models. The tests show that the single care taker model can be rejected in favour of the dual care taker model while the dual care taker model cannot be rejected in favour of the single care taker model.

Keywords: Child care demand; Subsidized child care; Dual care taker model

JEL-codes: J13

28 pages, June 17, 2008

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