Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/34617
Authors: 
Brink, Anna
Nordblom, Katarina
Wahlberg, Roger
Year of Publication: 
2007
Series/Report no.: 
IZA Discussion Papers 2748
Abstract: 
The effects of a recent Swedish child-care fee reform are compared with those of an alternative reform, increased child benefits. The fee reform implied considerably decreased fees and was intended to increase both labor supply among parents and their economic well-being. We estimate labor supply effects using a discrete choice labor supply model, and simulate behavioral responses to the changes. We find positive, but small, effects on labor supply from reduced fees, while increased child benefits would make single mothers decrease their labor supply. On the other hand, increased child benefits would make income distribution more equal. We make a social welfare comparison and conclude that for plausible values of inequality aversion, the alternative reform would have been preferable to the implemented fee reform.
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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