Child-care quality and fee structure: Effects on labor supply and leisure composition

Anna Brink () and Katarina Nordblom ()
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Anna Brink: Department of Economics, School of Economics and Commercial Law, Göteborg University, Postal: Box 640, SE 405 30 GÖTEBORG

No 157, Working Papers in Economics from University of Gothenburg, Department of Economics

Abstract: This paper studies the effects of public child-care subsidies on parental time allocation. We develop a model where parents are allowed to utilize subsidized care during both working and leisure hours. The model distinguishes between subsidies to child-care quality and to fees. Three types of fees are considered: flat, based on time spent in care, and based on parental income. We show that parental time allocation depends on whether quality or fees are subsidized, and also that fee subsidies have di erent e ects depending on the fee structure. We further show that even if a subsidy increases the use of public care, the effect on labor supply may be unclear due to the possibility of using child care also when not working.

Keywords: Public child care; Child-care quality; Child-care fees; Time allocation; Labor supply (search for similar items in EconPapers)
JEL-codes: H42 J13 J22 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2005-01-23
New Economics Papers: this item is included in nep-lab and nep-ltv
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Citations: View citations in EconPapers (2)

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