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Labour supply effects of a cash-for-care subsidy

Pål Schøne ()

Journal of Population Economics, 2004, vol. 17, issue 4, 703-727

Abstract: From 1999, all parents in Norway with children aged one to three, who did not attend publicly subsidised daycare, became eligible for a cash-for-care (CFC) subsidy. One effect of the CFC-subsidy was to increase in the relative price of external child care. This article analyses whether the CFC-subsidy has led to a reduction in the labour supply of mothers. A framework for evaluating policy reforms when reforms are equally and nation-wide accessible is put forward. The results show that the CFC-subsidy has reduced women’s labour supply. The results are sustained after controlling for contemporaneous macroeconomic shocks, using a triple difference approach. Copyright Springer-Verlag 2004

Keywords: J13; J18; J22; Labour supply; child care; difference-in-differences-in-differences (search for similar items in EconPapers)
Date: 2004
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DOI: 10.1007/s00148-003-0176-8

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