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Title:Can child care policy encourage employment and fertility? Evidence from a structural model PDF Logo
Authors:Haan, Peter
Wrohlich, Katharina
Issue Date:2009
Series/Report no.:Discussion papers // German Institute for Economic Research 935
Abstract:In this paper we develop a structural model of female employment and fertility which accounts for intertemporal feedback effects between the two outcomes. We identify the effect of financial incentives on the employment and fertility decision by exploiting variation in the tax and transfer system which differs by employment state and number of children. To this end we simulate in detail the effects of the tax and transfer system including child care costs. The model provides estimates of structural preferences of women which can be used to study the effect of various policy reforms. In particular, we show that increasing child care subsidies conditional on employment increases labor supply of all women as well as fertility of the childless and highly educated women.
Subjects:Employment
fertility
financial incentives
JEL:C23
C25
J22
J64
Document Type:Working Paper
Appears in Collections:DIW-Diskussionspapiere
Publikationen von Forscherinnen und Forschern des DIW

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