Subsidizing private childcare in a universal regime
Räsänen, T., & Österbacka, E. (2024). Subsidizing private childcare in a universal regime. Review of Economics of the Household, 22(1), 199-230. https://doi.org/10.1007/s11150-023-09657-7
Published in
Review of Economics of the HouseholdDate
2024Discipline
Empirical MicroeconomicsPäätöksentekoa tukeva taloustiede ja talouden kilpailukyky (painoala)TaloustiedeEmpirical MicroeconomicsPolicy-Relevant Economics and Competitiveness of Economy (focus area)EconomicsCopyright
© 2023 the Authors
All families in Finland have the freedom to choose between subsidized home care, universal public childcare, and private childcare. We study the impact of the introduction of private childcare subsidies in Finland. Private childcare subsidies have causal effects on take-up but no impact on home care or employment among women with small children. Instead, private services seem to crowd out public childcare. Private services have a socioeconomic gradient by mother’s education that steepens when the subsidy increases. Families’ preferences between home care, public childcare, and private childcare do not explain the result.
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SpringerISSN Search the Publication Forum
1569-5239Keywords
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https://converis.jyu.fi/converis/portal/detail/Publication/183215192
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- Kauppakorkeakoulu [1374]
Additional information about funding
Research was funded by the Strategic Research Council (SRC), FLUX consortium, decision numbers: 345130 and 345133. Open Access funding provided by Social Insurance Institution of Finland (KELA).License
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