Taxing Childcare: Effects on Family Labor Supply and Children

• Published in: IDEAS Working Paper Series from RePEc
• Main Authors: Gathmann, Christina, Sass, Björn
• Format: Paper
• Language: English
• Published: St. Louis Federal Reserve Bank of St. Louis 01.01.2012
• Subjects: Cognition & reasoning; Cognitive ability; Families & family life; Labor supply

Previous studies report a wide range of estimates for how female labor supply responds to childcare prices. We shed new light on this question using a reform that raised the prices of public daycare. Parents respond by reducing public daycare and increasing childcare at home. Parents also reduce inf...