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Long‐term Effects of Cash for Childcare on Mothers' Labour Supply

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  • Marit Rønsen
Abstract
. In 1998–99 a cash benefit for 1‐ to 2‐year‐olds who do not use subsidized childcare on full‐time basis was introduced in Norway. A large‐scale appraisal shortly after introduction concluded that the effects on mothers' labour supply were surprisingly small. The more long‐term effects reported in this paper suggest that this conclusion may need modification. Almost 4 years after the reform the employment probability had declined significantly, and employed mothers were much more likely to be on leave. All in all the reduction in labour supply is estimated to be 3¾ hours per week or almost 20 per cent.

Suggested Citation

  • Marit Rønsen, 2009. "Long‐term Effects of Cash for Childcare on Mothers' Labour Supply," LABOUR, CEIS, vol. 23(3), pages 507-533, September.
    • Handle: RePEc:bla:labour:v:23:y:2009:i:3:p:507-533
    DOI: 10.1111/j.1467-9914.2009.00456.x
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    References listed on IDEAS

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    1. Randi Kjeldstad & Marit Rønsen, 2004. "Welfare Rules, Business Cycles, And Employment Dynamics Among Lone Parents In Norway," Feminist Economics, Taylor & Francis Journals, vol. 10(2), pages 61-89.
    2. Rolf Aaberge & Ugo Colombino, 2005. "Designing Optimal Taxes With a Microeconometric Model of Household Labour Supply," Public Economics 0510013, University Library of Munich, Germany.
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    4. Daniela Del Boca & Daniela Vuri, 2007. "The mismatch between employment and child care in Italy: the impact of rationing," Journal of Population Economics, Springer;European Society for Population Economics, vol. 20(4), pages 805-832, October.
    5. Tom Kornstad & Thor Thoresen, 2007. "A discrete choice model for labor supply and childcare," Journal of Population Economics, Springer;European Society for Population Economics, vol. 20(4), pages 781-803, October.
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    8. Daniela Del Boca, 2002. "The effect of child care and part time opportunities on participation and fertility decisions in Italy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(3), pages 549-573.
    9. Ghazala Naz, 2004. "The impact of cash-benefit reform on parents’ labour force participation," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(2), pages 369-383, June.
    10. Siv Gustafsson & Frank Stafford, 1992. "Child Care Subsidies and Labor Supply in Sweden," Journal of Human Resources, University of Wisconsin Press, vol. 27(1), pages 204-230.
    11. Karsten Hank & Michaela R. Kreyenfeld, 2000. "Does the availability of childcare influence the employment of mothers? Findings from western Germany," MPIDR Working Papers WP-2000-003, Max Planck Institute for Demographic Research, Rostock, Germany.
    12. Jean Kimmel, 1998. "Child Care Costs As A Barrier To Employment For Single And Married Mothers," The Review of Economics and Statistics, MIT Press, vol. 80(2), pages 287-299, May.
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    Cited by:

    1. Marit Rønsen & Ragni Hege Kitterød, 2012. "Entry into work following childbirth among mothers in Norway. Recent trends and variation," Discussion Papers 702, Statistics Norway, Research Department.
    2. Eric Bettinger & Torbjørn Haegeland & Mari Rege, 2014. "Home with Mom: The Effects of Stay-at-Home Parents on Children's Long-Run Educational Outcomes," Journal of Labor Economics, University of Chicago Press, vol. 32(3), pages 443-467.
    3. Drange, Nina & Rege, Mari, 2013. "Trapped at home: The effect of mothers' temporary labor market exits on their subsequent work career," Labour Economics, Elsevier, vol. 24(C), pages 125-136.
    4. Andersland, Leroy & Nilsen, Øivind A., 2016. "Households’ responses to price changes of formal childcare," Discussion Paper Series in Economics 20/2016, Norwegian School of Economics, Department of Economics.
    5. Ross Guest & Nick Parr, 2013. "Family policy and couples’ labour supply: an empirical assessment," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(4), pages 1631-1660, October.

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