The effectiveness of fiscal stimuli for working parents

Henk-Wim de Boer, Egbert L.W. Jongen and Jan Kabátek

Labour Economics, 2022, vol. 76, issue C

Abstract: Child care subsidies and in-work benefits are prominent policies used to promote the labor participation of parents. We study these policies in a structural model of labor supply and child care use for couples in the Netherlands. Major reforms in family policies benefit the identification. We use differences-in-differences to assess the reliability of the model predictions. In-work benefits for secondary earners that increase with income are shown to be the most cost-effective tool for stimulating parental labor supply. Child care subsidies are less effective, as substitution of informal for formal care drives up public expenditures. We also relate our findings to related policies in the UK and US.

Keywords: Household labor supply; Structural models; Differences-in-differences; Work and care policies (search for similar items in EconPapers)
JEL-codes: C21 C25 C52 H31 J22 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0927537122000458
Full text for ScienceDirect subscribers only

Related works:
Working Paper: The Effectiveness of Fiscal Stimuli for Working Parents (2015)
Working Paper: The Effectiveness of Fiscal Stimuli for Working Parents (2015)
Working Paper: The effectiveness of fiscal stimuli for working parents (2014)
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: https://EconPapers.repec.org/RePEc:eee:labeco:v:76:y:2022:i:c:s0927537122000458

DOI: 10.1016/j.labeco.2022.102152

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 Catherine Liu ().