Care or Cash? The Effect of Child Care Subsidies on Student Performance

Sandra Black, Paul Devereux, Katrine Løken and Kjell G Salvanes

No 6541, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Given the wide use of childcare subsidies across countries, it is surprising how little we know about the effect of these subsidies on children's longer run outcomes. Using a sharp discontinuity in the price of childcare in Norway, we are able to isolate the effects of childcare subsidies on both parental and student outcomes. We find very small and statistically insignificant effects of childcare subsidies on childcare utilization and parental labor force participation. Despite this, we find significant positive effect of the subsidies on children's academic performance in junior high school, suggesting the positive shock to disposable income provided by the subsidies may be helping to improve children's scholastic aptitude.

Keywords: education; income subsidy; child care (search for similar items in EconPapers)
JEL-codes: I1 J1 (search for similar items in EconPapers)
Pages: 53 pages
Date: 2012-05
New Economics Papers: this item is included in nep-edu, nep-lab and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

Published - published in: Review of Economics and Statistics, 2014, 96 (5), 824-837

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https://docs.iza.org/dp6541.pdf (application/pdf)

Related works:
Journal Article: Care or Cash? The Effect of Child Care Subsidies on Student Performance (2014)
Working Paper: Care or Cash? The Effect of Child Care Subsidies on Student Performance (2012)
Working Paper: CARE OR CASH? THE EFFECT OF CHILD CARE SUBSIDIES ON STUDENT PERFORMANCE (2012)
Working Paper: Care or Cash? The Effect of Child Care Subsidies on Student Performance (2012)
Working Paper: Care or Cash? The Effect of Child Care Subsidies on Student Performance (2012)
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