EconPapers    
Economics at your fingertips  
 

Maximum fee versus child benefit: a welfare analysis of Swedish child-care fee reform

Anna Brink (), Katarina Nordblom () and Roger Wahlberg ()

International Tax and Public Finance, 2007, vol. 14, issue 4, 457-480

Abstract: The effects of a recent Swedish child-care fee reform are compared with those of an alternative reform, increased child benefits. The fee reform implied considerably decreased fees and was intended to increase both labor supply among parents and their economic well-being. We estimate labor supply effects using a discrete choice labor supply model, and simulate behavioral responses to the changes. We find positive, but small, effects on labor supply from reduced fees, while increased child benefits would make single mothers decrease their labor supply. On the other hand, increased child benefits would make income distribution more equal. We make a social welfare comparison and conclude that for plausible values of inequality aversion, the alternative reform would have been preferred to the implemented fee reform. Copyright Springer Science+Business Media, LLC 2007

Keywords: Labor supply; Redistribution; Reform; Child care; Fees; Child benefit; H31; I38; J22 (search for similar items in EconPapers)
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1007/s10797-007-9030-3 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:kap:itaxpf:v:14:y:2007:i:4:p:457-480

Ordering information: This journal article can be ordered from
http://www.springer. ... ce/journal/10797/PS2

Access Statistics for this article

International Tax and Public Finance is currently edited by Ronald B. Davies and Kimberly Scharf

More articles in International Tax and Public Finance from Springer, International Institute of Public Finance Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2020-01-27
Handle: RePEc:kap:itaxpf:v:14:y:2007:i:4:p:457-480