Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/95132 
Year of Publication: 
1989
Series/Report no.: 
IUI Working Paper No. 221
Publisher: 
The Research Institute of Industrial Economics (IUI), Stockholm
Abstract: 
This paper utilizes data from a Swedish household survey for 1984 (The HUS data) in combination with data on public daycare fees and spaces per child by community. We argue that the subsidy rate and availability of spaces determined by the political leaders of the community is to a large extent exogenous to the household. The joint out-of-home childcare and labor supply decision is analyzed by logit choice models. We find that the high quality public daycare in Sweden encourages labor market activity of women with preschoolers even when spouse's income is high and that when spaces are not rationed a lower price encourages use.
Subjects: 
Childcare subsidies
labour supply
community provision of services
JEL: 
H31
H53
J22
Document Type: 
Working Paper

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