Work

Child care, parental labor supply and tax revenue

Year: 2019

Type: article

Abstract: We study the impact of child care for toddlers on the labor supply of mothers and fathers in Norway. For identification, we exploit the staggered expansion across municipalities following a large child care reform from 2002. Our IV-estimates indicate that child care causes an increase in the labor supply of cohabiting mothers who move towards full time employment. Despite this, average taxes paid on the extra income is low, lending little support to the argument that parts of the cost of child care is offset by increased taxes. Meanwhile, we find no impact for fathers.

Source: Labour Economics

DOI: 10.1016/j.labeco.2019.101762

Authors: Martin Eckhoff Andresen, Tarjei Havnes

Institutions: Statistics Norway, University of Oslo

Language: English

Topic: Gender, Labor, and Family Dynamics

Subfield: Gender Studies

Field: Social Sciences

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $1,900