Childcare Costs and the Demand for Children - Evidence from a Nationwide Reform
CESifo, Munich, 2010
CESifo Working Paper No. 3210
![](https://cesifo.org/DocImg/cesifo1_wp3210.jpg?c=1689237190)
Exploiting the exogenous variation in childcare costs caused by a Swedish childcare reform, we are able to identify the causal effect of childcare costs on fertility in a context in which childcare enrollment is almost universal, user fees are low, and the labor force participation of mothers is very high. Anticipation of a reduction in childcare costs increased the number of first births, but only seemed to affect the timing of second births. We find a negative income effect for families with children already enrolled in child care.
Labour Markets