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Title:Care or cash? The effect of child care subsidies on student performance PDF Logo
Authors:Black, Sandra E.
Devereux, Paul J.
Loken, Katrine V.
Salvanes, Kjell G.
Issue Date:2012
Series/Report no.:Discussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6541
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.
Subjects:education
income subsidy
child care
JEL:I1
J1
Persistent Identifier of the first edition:urn:nbn:de:101:1-201208175104
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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