EconPapers    
Economics at your fingertips  
 

Parental labour supply responses to the abolition of day care fees

Mathias Huebener (), Astrid Pape and C. Katharina Spiess

EconStor Open Access Articles and Book Chapters, 2020, 510-543

Abstract: This paper provides evidence that low private contributions to highly subsidised day care constrain mothers from working longer hours. We study the effects of reforms that abolished day care fees in Germany on parental labour supply. The reforms removed private contributions to highly subsidised day care in the year before children enter primary school. We exploit the staggered reform across states with a difference-in-differences approach and event studies. Although participation in day care is almost universal for preschoolers, we provide evidence that the reforms increase the intensity of day care use and the working time of mothers by about 7.1 percent. Single mothers, mothers with no younger children, mothers in denser local labour markets, and highly educated mothers react most strongly. We find no evidence for labour supply responses at the extensive margin and no evidence of responses in paternal labour supply. The effects on maternal labour supply fade away by the end of primary school as mothers in the control group also gradually increase their labour supply as their children grow older.

Keywords: Labour supply; Childcare costs; Family policy; Event study (search for similar items in EconPapers)
JEL-codes: J13 J22 J38 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/233854/1/H ... Labour-Supply-SV.pdf (application/pdf)

Related works:
Journal Article: Parental labour supply responses to the abolition of day care fees (2020) Downloads
Working Paper: Parental Labour Supply Responses to the Abolition of Day Care Fees (2019) 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: https://EconPapers.repec.org/RePEc:zbw:espost:233854

Access Statistics for this article

More articles in EconStor Open Access Articles and Book Chapters from ZBW - Leibniz Information Centre for Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().

 
Page updated 2021-11-20
Handle: RePEc:zbw:espost:233854