Taxing Childcare: Effects on Family Labor Supply and Children
نویسندگان
چکیده
Taxing Childcare: Effects on Family Labor Supply and Children Previous studies report a wide range of estimates for how female labor supply responds to childcare prices. We shed new light on this question using a reform that raised the prices of public daycare. Parents respond by reducing public daycare and increasing childcare at home. Parents also reduce informal childcare indicating that public daycare and informal childcare are complements. Female labor force participation declines and the response is strongest for single parents and low-income households. The short-run effects on cognitive and non-cognitive skills are mixed, but negative for girls. Spillover effects on older siblings suggest that the policy affects the whole household, not just targeted family members. JEL Classification: J13, J22, J18
منابع مشابه
Do Higher Childcare Subsidies Improve Parental Well-being? Evidence from Québec’s Family Policies
Do Higher Childcare Subsidies Improve Parental Well-being? Evidence from Québec’s Family Policies In this paper, we investigate the effect of a change in childcare subsidies on parental subjective well-being. Starting in 1997, the Canadian province of Québec implemented a generous program providing $5-a-day childcare to children under the age of 5. By 2007, the percentage of children attending ...
متن کاملUniversal Childcare, Maternal Labor Supply and Family Well-Being
The growing labor force participation of women with small children in both the U.S. and Canada has led to calls for increased public financing for childcare. The optimality of public financing depends on a host of factors, such as the “crowd-out” of existing childcare arrangements, the impact on female labor supply, and the effects on child well-being. The introduction of universal, highly-subs...
متن کاملFamily Proximity, Childcare, and Women's Labor Force Attachment*
We show that close geographical proximity to mothers or mothers-in-law has a substantial positive effect on the labor supply of married women with young children. We argue that the mechanism through which proximity increases labor supply is the availability of childcare. We interpret availability broadly enough to include not only regular scheduled childcare during work hours but also an insura...
متن کاملFamily proximity, childcare, and womenâ€TMs labor force attachment
Please cite this article in press as: Compton, J., P (2013), http ://dx.doi.org/10.1016/ j.jue.2013.0 3.0 We show that close geographical proximity to mothers or mothers-inlaw has a substantial positive effect on the labor supply of married women with young children. We argue that the mechanism through which proximity increases labor supply is the availability of childcare. We interpret avai la...
متن کاملTwo Birds with One Stone: Female Labor Supply, Fertility, and Market Childcare
The correlation between female labor force participation rate (FPR) and total fertility rate (TFR) across developed countries has switched from negative to positive. This paper provides a structural explanation of the historical pattern via changes in substitutability between mother’s direct childcare and indirect market care. Analysis of a life-cycle model of married women’s labor supply and f...
متن کامل