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

Sandra Black, Paul Devereux, Katrine Løken and Kjell G Salvanes

No 13/2012, Discussion Paper Series in Economics from Norwegian School of Economics, Department of Economics

Abstract: Given the wide use of childcare 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 childcare in Norway, we are able to isolate the effects of childcare subsidies on both parental and student outcomes. We find very small and statistically insignificant effects of childcare subsidies on childcare 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 the positive shock to disposable income provided by the subsidies may be helping to improve children’s scholastic aptitude.

Keywords: Childcare; subsidies; academic performance (search for similar items in EconPapers)
JEL-codes: H52 J13 (search for similar items in EconPapers)
Pages: 52 pages
Date: 2012-05-16
New Economics Papers: this item is included in nep-dem, nep-ltv and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Related works:
Journal Article: Care or Cash? The Effect of Child Care Subsidies on Student Performance (2014)
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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