Childcare Costs and the Demand for Children - Evidence from a Nationwide Reform

45 Pages Posted: 20 Oct 2010

See all articles by Eva Moerk

Eva Moerk

IFAU - Institute for Labour Market Policy Evaluation; Uppsala University - Department of Economics; IZA Institute of Labor Economics

Anna Sjögren

IFAU - Institute for Labour Market Policy Evaluation; Stockholm University - Swedish Institute for Social Research (SOFI)

Helena Svaleryd

Uppsala University

Date Written: October 19, 2010

Abstract

Exploiting the exogenous variation in childcare costs caused by a Swedish childcare reform, we are able to identify the causal effect of childcare costs on fertility in a context in which childcare enrollment is almost universal, user fees are low, and the labor force participation of mothers is very high. Anticipation of a reduction in childcare costs increased the number of first births, but only seemed to affect the timing of second births. We find a negative income effect for families with children already enrolled in child care.

Keywords: childcare, cost of children, fertility, quasi-experiment, difference-in-differences

JEL Classification: H31, J13

Suggested Citation

Moerk, Eva and Sjoegren, Anna and Svaleryd, Helena, Childcare Costs and the Demand for Children - Evidence from a Nationwide Reform (October 19, 2010). CESifo Working Paper Series No. 3210, Available at SSRN: https://ssrn.com/abstract=1694450 or http://dx.doi.org/10.2139/ssrn.1694450

Eva Moerk (Contact Author)

IFAU - Institute for Labour Market Policy Evaluation ( email )

Box 513
751 20 Uppsala
Sweden

Uppsala University - Department of Economics ( email )

Box 513
SE-75120 Uppsala
Sweden

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Anna Sjoegren

IFAU - Institute for Labour Market Policy Evaluation ( email )

Box 513
751 20 Uppsala
Sweden

Stockholm University - Swedish Institute for Social Research (SOFI) ( email )

Kyrkgatan 43B
SE-106 91 Stockholm
Sweden

Helena Svaleryd

Uppsala University ( email )

P.O. Box 513
Uppsala, 75120
Sweden

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