Can child care policy encourage employment and fertility? Evidence from a structural model

Arbeitspapier

In this paper we develop a structural model of female employment and fertility which accounts for intertemporal feedback effects between the two outcomes. We identify the effect of financial incentives on the employment and fertility decision by exploiting variation in the tax and transfer system which differs by employment state and number of children. To this end we simulate in detail the effects of the tax and transfer system including child care costs. The model provides estimates of structural preferences of women which can be used to study the effect of various policy reforms. In particular, we show that increasing child care subsidies conditional on employment increases labor supply of all women as well as fertility of the childless and highly educated women.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: DIW Discussion Papers ; No. 935

Classification and Topics

• Classification: Wirtschaft ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models ; Single Equation Models; Single Variables: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities ; Time Allocation and Labor Supply ; Unemployment: Models, Duration, Incidence, and Job Search
• Subject: Employment ; fertility ; financial incentives ; Kinderbetreuung ; Familienpolitik ; Wirkungsanalyse ; Frauenerwerbstätigkeit ; Arbeitsangebot ; Fruchtbarkeit ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Haan, Peter ; Wrohlich, Katharina
• Event: Veröffentlichung
• (who): Deutsches Institut für Wirtschaftsforschung (DIW)
• (where): Berlin
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/29797
• Last update: 10.03.2025, 11:41 AM CET