Scandinavian Working Papers in Economics

Working Paper Series, Center for Fiscal Studies,
Uppsala University, Department of Economics

No 2010:6: Does Providing Childcare to Unemployed Affect Unemployment Duration?

Ulrika Vikman ()
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Ulrika Vikman: Uppsala Center for Fiscal Studies, Postal: Department of Economics, Uppsala University, P.O. Box 513, SE-751 20 Uppsala, Sweden

Abstract: This paper examines if the probability of leaving unemployment changes for unemployed parents with young children when childcare is available. To investigate this, I use the heterogeneity among Swedish municipalities before the implementation of a 2001 Swedish childcare reform making it mandatory for municipalities to offer childcare to unemployed parents for at least 15 hours per week.In the study di erence-in-di erences and difference-in-difference-in differences methods are used. The results indicate a positive effect on the probability of leaving unemployment for mothers when childcare is available, but no effect is found for fathers. For mothers, some heterogeneous effects are also found, with a greater effect on the probability of leaving unemployment for work when childcare is available for mothers with only compulsory schooling or university education and mothers with two children.

Keywords: Unemployment duration; Childcare

JEL-codes: J13; J64

43 pages, May 6, 2010

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