Taxing childcare: effects on family labor supply and children

Previous studies report a wide range of estimates for how female labor supply responds to childcare prices. We shed new light on this question using a reform that raised the prices of public daycare. Parents respond by reducing public daycare and increasing childcare at home. Parents also reduce inf...

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Bibliographic Details
Main Authors: Gathmann, Christina (Author) , Saß, Björn (Author)
Format: Book/Monograph Working Paper
Language:English
Published: Berlin DIW 2012
Edition:This version: March, 2012
Series:SOEPpapers on multidisciplinary panel data research 438
In: SOEP papers on multidisciplinary panel data research (438)

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Online Access:Verlag, Volltext: http://www.diw.de/sixcms/detail.php?id=diw_01.c.397734.de
Verlag, Volltext: http://www.diw.de/documents/publikationen/73/diw_01.c.397727.de/diw_sp0438.pdf
Download aus dem Internet, Stand: 06.06.2012, Volltext: http://hdl.handle.net/10419/59018
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Author Notes:Christina Gathmann and Björn Sass
Description
Summary:Previous studies report a wide range of estimates for how female labor supply responds to childcare prices. We shed new light on this question using a reform that raised the prices of public daycare. Parents respond by reducing public daycare and increasing childcare at home. Parents also reduce informal childcare indicating that public daycare and informal childcare are complements. Female labor force participation declines and the response ist strongest for single parents and low-income households. The short-run effects on cognitive and non-cognitive skills are mixed, but negative for girls. Spillover effects on older siblings suggest that the policy affects the whole household, not just targeted family members. -- Childcare ; Labor supply ; Cognitive skills ; Family Policy ; Germany
Physical Description:Online Resource
Format:Systemvoraussetzungen: Acrobat reader.