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

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 o er childcare to unemployed parents for at least 15 hours per week. In the study di erence-in-di erences and di erence-in-di erence-indi erences methods are used. The results indicate a positive e ect on the probability of leaving unemployment for mothers when childcare is available, but no e ect is found for fathers. For mothers, some heterogeneous e ects are also found, with a greater e ect 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

46 pages, May 6, 2010

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