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| Author: | Simonsen, M. |
| Title: | Price of high-quality daycare and female employment |
| Journal: | Scandinavian Journal of Economics
2010 : SEP, VOL 112:3 p. 570-594 |
| Index terms: | subsidies children child care facilities maternity leave |
| Freeterms: | day care |
| Language: | eng |
| Abstract: | Utilizing local variation between municipalities, I estimate the degree to which the price of high-quality publicly endorsed childcare affects female employment following maternity leave. Importantly, prices are dependent of the income and hereby likely endogenous, however by exploiting information on minimum income compensation during non-employment, this problem is bypassed. The results indicate that the price negatively affects employment. A price increase of 1 per month decreases employment by 0.08%, corresponding to a price elasticity of −0.17. These effects occur in the first 12 months after childbirth. It is also discovered that availability of childcare increases employment. |
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