Nber Working Paper Series Care or Cash? the Effect of Child Care Subsidies on Student Performance

نویسندگان

  • Sandra E. Black
  • Paul J. Devereux
  • Katrine V. Løken
  • Kjell G. Salvanes
  • Jens Ludwig
  • Michael Baker
چکیده

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. Sandra E. Black Department of Economics University of Texas Austin, TX 78712 and IZA and NBER [email protected] Paul J. Devereux School of Economics and Geary Institute University College Dublin Belfield, Dublin 4 Ireland and IZA and CEPR [email protected] Katrine V. Løken Department of Economics University of Bergen Postboks 5802 5020 Bergen, Norway [email protected] Kjell G. Salvanes Department of Economics Norwegian School of Economics Hellev. 30, N-5035 Bergen Norway and IZA and CEP [email protected]

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

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تاریخ انتشار 2012