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Does providing childcare to unemployed affect unemployment duration?

Author

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  • Vikman, Ulrika

    (Department of Economics, Uppsala University)

Abstract

This paper examines if the probability of leaving unemployment changes for unemployed parents with young children when childcare is available. To investigate this, I use the heterogeneity among Swedish municipalities before the implementation of a 2001 Swedish childcare reform making it mandatory for municipalities to offer child¬care to unemployed parents for at least 15 hours per week. In the study difference-in-differences and difference-in-difference-in-differences methods are used. The results indicate a positive effect on the probability of leaving unemployment for mothers when childcare is available, but no effect is found for fathers. For mothers, some heterogeneous effects are also found, with a greater effect on the probability of leaving unemployment for work when childcare is available for mothers with only compulsory schooling or university education and mothers with two children.

Suggested Citation

  • Vikman, Ulrika, 2010. "Does providing childcare to unemployed affect unemployment duration?," Working Paper Series 2010:5, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    • Handle: RePEc:hhs:ifauwp:2010_005
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    References listed on IDEAS

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    1. Nick Carroll, 2006. "Explaining Unemployment Duration in Australia," The Economic Record, The Economic Society of Australia, vol. 82(258), pages 298-314, September.
    2. Clotfelter, Charles & Glennie, Elizabeth & Ladd, Helen & Vigdor, Jacob, 2008. "Would higher salaries keep teachers in high-poverty schools? Evidence from a policy intervention in North Carolina," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1352-1370, June.
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    5. Arulampalam, Wiji, 2001. "Is Unemployment Really Scarring? Effects of Unemployment Experiences on Wages," Economic Journal, Royal Economic Society, vol. 111(475), pages 585-606, November.
    6. Lundin, Daniela & Mörk, Eva & Öckert, Björn, 2008. "How far can reduced childcare prices push female labour supply?," Labour Economics, Elsevier, vol. 15(4), pages 647-659, August.
    7. Mortensen, Dale T., 1987. "Job search and labor market analysis," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 2, chapter 15, pages 849-919, Elsevier.
    8. Knut Roed & Tao Zhang, 2003. "Does Unemployment Compensation Affect Unemployment Duration?," Economic Journal, Royal Economic Society, vol. 113(484), pages 190-206, January.
    9. ., 2007. "Labour: The Battle Against Unemployment," Chapters, in: Keynes and his Battles, chapter 7, Edward Elgar Publishing.
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Offering childcare to unemployed actually helps
      by Economic Logician in Economic Logic on 2010-07-20 19:34:00

    Citations

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    Cited by:

    1. Norén, Anna, 2015. "Childcare and the division of parental leave," Working Paper Series 2015:24, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    2. van den Berg, Gerard J. & Siflinger, Bettina M., 2022. "The effects of a daycare reform on health in childhood – Evidence from Sweden," Journal of Health Economics, Elsevier, vol. 81(C).
    3. Francesca Carta & Lucia Rizzica, 2016. "Female employment and pre-kindergarten: On the unintended effects of an Italian reformAbstract: We theoretically show that when mothers need to buy childcare services not only if they work but also if," Working Papers 091, "Carlo F. Dondena" Centre for Research on Social Dynamics (DONDENA), Università Commerciale Luigi Bocconi.
    4. Vikman, Ulrika, 2013. "Paid parental leave to immigrants: An obstacle to labor market entrance?," Working Paper Series 2013:4, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    5. Carta, Francesca & Rizzica, Lucia, 2018. "Early kindergarten, maternal labor supply and children's outcomes: Evidence from Italy," Journal of Public Economics, Elsevier, vol. 158(C), pages 79-102.
    6. van den Berg, Gerard J. & Siflinger, Bettina M., 2018. "The Effects of Day Care on Health During Childhood: Evidence by Age," IZA Discussion Papers 11447, Institute of Labor Economics (IZA).
    7. Aalto, Aino-Maija & Mörk, Eva & Sjögren, Anna & Svaleryd, Helena, 2019. "Does childcare improve the health of children with unemployed parents? Evidence from Swedish childcare access reform," Working Paper Series 2019:1, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    8. Aalto, Aino-Maija & Mörk, Eva & Sjögren, Anna & Svaleryd, Helena, 2018. "Childcare - A safety net for children?," Working Paper Series 2018:11, Uppsala University, Department of Economics.
    9. Van den Berg, Gerard & Siflinger, Bettina, 2020. "The Effects of Day Care on Health During Childhood: Evidence by Age," CEPR Discussion Papers 15036, C.E.P.R. Discussion Papers.

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    More about this item

    Keywords

    Unemployment duration; childcare;

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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