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Employment Protection and Parental Child Care

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  • Olsson, Martin

    (Research Institute of Industrial Economics (IFN))

Abstract

I examine if employment protection affects parental childcare. I find that a softer employment protection has a substantial effect on how parents use and divide paid childcare between them. The identification relies on a reform that made it easier for employers in Sweden to dismiss workers in small firms. I estimate that a softer employment protection reduces the total days of parental childcare in targeted firms, measured as total days of parental leave or temporary parental leave. Both a sorting effect and a behavioral effect can explain the reduced childcare. I also find evidence of a redistribution effect of paid parental childcare within households if only one partner was affected by the reform. I interpret the redistribution effect as a way of evading an external cost on the child.

Suggested Citation

  • Olsson, Martin, 2013. "Employment Protection and Parental Child Care," Working Paper Series 952, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0952
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    Cited by:

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    2. Boye, Katarina, 2014. "Can you stay at home today? The relationship between economic dependence, parents’ occupation and care leave for sick children," Working Paper Series 2014:4, IFAU - Institute for Evaluation of Labour Market and Education Policy.

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    More about this item

    Keywords

    Employment protection; Parental childcare; Within family distribution;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics

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