Care or Cash? The Effect of Child Care Subsidies on Student Performance

Sandra Black, Paul Devereux, Katrine V. L�ken and Kjell G Salvanes
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Katrine V. L�ken: University of Bergen
Authors registered in the RePEc Author Service: Katrine Vellesen Løken

The Review of Economics and Statistics, 2014, vol. 96, issue 5, 824-837

Abstract: Given the wide use of child care subsidies across countries, it is surprising how little we know about the effect of these subsidies on children's longer-run outcomes. Using a sharp discontinuity in the price of child care in Norway, we are able to isolate the effects of child care subsidies on both parental and student outcomes. We find very small and statistically insignificant effects of child care subsidies on child care utilization and parental labor force participation. Despite this, we find significant positive effect of the subsidies on children's academic performance in junior high school, suggesting that the positive shock to disposable income provided by the subsidies may be helping to improve children's scholastic aptitude.

Keywords: child care; student performance; labor force (search for similar items in EconPapers)
JEL-codes: I18 I2 J13 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (57)

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Related works:
Working Paper: Care or Cash? The Effect of Child Care Subsidies on Student Performance (2012)
Working Paper: CARE OR CASH? THE EFFECT OF CHILD CARE SUBSIDIES ON STUDENT PERFORMANCE (2012)
Working Paper: Care or Cash? The Effect of Child Care Subsidies on Student Performance (2012)
Working Paper: Care or Cash? The Effect of Child Care Subsidies on Student Performance (2012)
Working Paper: Care or Cash? The Effect of Child Care Subsidies on Student Performance (2012)
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