How far can reduced childcare prices push female labour supply?

Daniela Lundin, Eva Mörk () and Björn Öckert

Labour Economics, 2008, vol. 15, issue 4, 647-659

Abstract: Exploiting exogenous variation in childcare prices stemming from a childcare price reform, this paper estimates effects of reductions in childcare costs on female labour supply. The reform introduced a cap on childcare prices, and lead to considerable reductions in prices depending on family type and region of residence. Since the price is determined by a handful of observed characteristics, we are able to match households that are similar in all relevant aspects, but experienced quite different price changes. Our difference-in-differences regression matching estimates are very precise, and close to zero.

Keywords: J21; J13; Labour; supply; Price; of; childcare; Difference-in-differences; regression; matching (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (193)

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