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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| Main Authors: | , |
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| Format: | Book/Monograph Working Paper |
| Language: | English |
| Published: |
Munich
Univ., Center for Economic Studies
2012
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| Edition: | This version: March, 2012 |
| Series: | CESifo working paper series Labour markets
3776 |
| In: |
CESifo working papers (3776)
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| Subjects: | |
| Online Access: |
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| Author Notes: | Christina Gathmann; Björn Sass |
| 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 is 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. |
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| Item Description: | Literaturverz. S. 27 - 30 |