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The Excess Demand for Subsidized Child Care in Germany

Katharina Wrohlich ()

No 470, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: The extension of subsidized child care is currently on the top of the political agenda in Germany. In this paper the excess demand for subsidized child care slots is estimated using a partial observability model in the style of Abowd and Farber (1982). The results show that more than 50 percent of children aged 0-3 are queuing for child care slots, whereas only 10 percent of children aged 4-6 years are queuing. For children in the younger age group about 255,000 child care slots are missing. This number comes close to the government's plan to expand subsidized child care by 230,000 slots.

Keywords: Child care; Excess demand; Partial observability model (search for similar items in EconPapers)
JEL-codes: J13 C35 D12 (search for similar items in EconPapers)
Date: 2005
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http://www.diw.de/documents/publikationen/73/diw_01.c.42875.de/dp470.pdf (application/pdf)

Related works:
Journal Article: The excess demand for subsidized child care in Germany (2008) Downloads
Working Paper: The Excess Demand for Subsidized Child Care in Germany (2005) Downloads
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