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Discussion Papers no. 881

Child care, parental labor supply and tax revenue

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 reform from 2002. Our IV-estimates indicate that child care use causes an increase in the labor supply of mothers. Results suggest that cohabiting mothers move towards full time employment, while single mothers move to part time. Meanwhile, we find no impact for fathers or grandparents. We also find an increase in the taxes paid from cohabiting mothers, lending some support to the argument that parts of the cost of child care is offset by increased taxes.

About the publication

Title

Child care, parental labor supply and tax revenue

Author

Martin Eckhoff Andresen og Tarjei Havnes

Series and number

Discussion Papers no. 881

Publisher

Statistics Norway

Topic

Discussion Papers

ISSN

1892-753X

Number of pages

48

About Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.

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