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Price of High‐quality Daycare and Female Employment

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  • Marianne Simonsen
Abstract
Using local variation between municipalities, I analyze the degree to which the price of high‐quality publicly subsidized childcare affects female employment following maternity leave. Importantly, prices are income dependent and thus likely endogenous, yet by exploiting information on minimum income compensation during non‐employment, I bypass this problem. The results show that the price negatively affects employment. A price increase of €1 per month decreases employment by 0.08%, which corresponds to a price elasticity of −0.17. These effects prevail during the first 12 months after childbirth. I also find that availability of childcare increases employment.

Suggested Citation

  • Marianne Simonsen, 2010. "Price of High‐quality Daycare and Female Employment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 112(3), pages 570-594, September.
    • Handle: RePEc:bla:scandj:v:112:y:2010:i:3:p:570-594
    DOI: 10.1111/j.1467-9442.2010.01617.x
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    References listed on IDEAS

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    Cited by:

    1. Simonsen, Marianne & Skipper, Lars, 2012. "The family gap in wages: What wombmates reveal," Labour Economics, Elsevier, vol. 19(1), pages 102-112.
    2. Rasmus Landersø & James J. Heckman, 2017. "The Scandinavian Fantasy: Sources of Intergenerational Mobility in Denmark and the US," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(1), pages 178-230, January.
    3. Sirpa Weckström, 2015. "Finnish Mothers’ Assessments of the Harmfulness of Childcare at Home on Occupational Careers: A Comparison of Twelve European Countries," Social Sciences, MDPI, vol. 4(4), pages 1-22, November.
    4. Nabanita Datta Gupta & Marianne Simonsen, 2010. "Effects of Universal Child Care Participation on Pre-teen Skills and Risky Behaviors," Economics Working Papers 2010-07, Department of Economics and Business Economics, Aarhus University.
    5. Geyer, Johannes & Haan, Peter & Wrohlich, Katharina, 2015. "The effects of family policy on maternal labor supply: Combining evidence from a structural model and a quasi-experimental approach," Labour Economics, Elsevier, vol. 36(C), pages 84-98.
    6. Müller, Kai-Uwe & Wrohlich, Katharina, 2020. "Does subsidized care for toddlers increase maternal labor supply? Evidence from a large-scale expansion of early childcare," Labour Economics, Elsevier, vol. 62(C).
    7. Nina Drange & Kjetil Telle, 2017. "Preschool and school performance of children from immigrant families," Empirical Economics, Springer, vol. 52(2), pages 825-867, March.
    8. Havnes, Tarjei & Mogstad, Magne, 2011. "Money for nothing? Universal child care and maternal employment," Journal of Public Economics, Elsevier, vol. 95(11), pages 1455-1465.
    9. Ludovica Gambaro & Jan Marcus & Frauke Peter, 2019. "School entry, afternoon care, and mothers’ labour supply," Empirical Economics, Springer, vol. 57(3), pages 769-803, September.
    10. Laura Ravazzini, 2018. "Childcare and maternal part-time employment: a natural experiment using Swiss cantons," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 154(1), pages 1-16, December.
    11. Halldén, Karin & Stenberg, Anders, 2013. "The Relationship between Hours of Domestic Services and Female Earnings: Panel Register Data Evidence from a Reform," Working Paper Series 4/2013, Stockholm University, Swedish Institute for Social Research.
    12. Datta Gupta, Nabanita & Simonsen, Marianne, 2016. "Academic performance and type of early childhood care," Economics of Education Review, Elsevier, vol. 53(C), pages 217-229.
    13. Datta Gupta, Nabanita & Simonsen, Marianne, 2011. "Where to Put the Kids? Effects of Type of Non-parental Child Care on Pre-teen Skills and Risky Behavior," IZA Discussion Papers 5848, Institute of Labor Economics (IZA).
    14. Ann-Sofie Kolm & Edward P. Lazear, 2010. "Policies Affecting Work Patterns and Labor Income for Women," NBER Chapters, in: Reforming the Welfare State: Recovery and Beyond in Sweden, pages 57-81, National Bureau of Economic Research, Inc.
    15. Gosta Esping-Andersen, 2008. "Childhood investments and skill formation," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 15(1), pages 19-44, February.
    16. 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.
    17. Petter Lundborg & Erik Plug & Astrid Würtz Rasmussen, 2017. "Can Women Have Children and a Career? IV Evidence from IVF Treatments," American Economic Review, American Economic Association, vol. 107(6), pages 1611-1637, June.

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