Economics at your fingertips  

Child care, parental labor supply and tax revenue

Martin Eckhoff Andresen and Tarjei Havnes

Labour Economics, 2019, vol. 61, issue C

Abstract: We study the impact of child care for toddlers on the labor supply of mothers and fathers in Norway. For identification, we exploit the staggered expansion across municipalities following a large child care reform from 2002. Our IV-estimates indicate that child care causes an increase in the labor supply of cohabiting mothers who move towards full time employment. Despite this, average taxes paid on the extra income is low, lending little support to the argument that parts of the cost of child care is offset by increased taxes. Meanwhile, we find no impact for fathers.

Keywords: Child care; Female labor supply; Tax revenue; Instrumental variables (search for similar items in EconPapers)
JEL-codes: H24 H52 J13 J22 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Child Care, Parental Labor Supply and Tax Revenue (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.1016/j.labeco.2019.101762

Access Statistics for this article

Labour Economics is currently edited by A. Ichino

More articles in Labour Economics from Elsevier
Bibliographic data for series maintained by Haili He ().

Page updated 2020-09-06
Handle: RePEc:eee:labeco:v:61:y:2019:i:c:s0927537119300880