Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/69566
Authors: 
Kosonen, Tuomas
Year of Publication: 
2013
Series/Report no.: 
CESifo Working Paper: Labour Markets 4065
Abstract: 
This paper studies the effect of child-care subsidies on parental labour supply. I use variation arising from changes in the municipality-specific supplement to Finnish child homecare allowance to identify the causal effect of subsidies on the labour force participation of parents. The variation in labour supply incentives is plausibly exogenous, since eligibility depends on municipal-level rules, but not on family income. Robustness checks indicate that the results are not driven by policy endogeneity or residential sorting. I find a robust result that 100 euros higher supplement per month reduces the maternal labour supply by 3 per cent.
Subjects: 
parental labour supply
child-care subsidies
participation elasticity
JEL: 
J22
J13
H22
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.