Subsidizing private childcare in a universal regime
Abstract
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.
Main Authors
Format
Articles
Research article
Published
2024
Series
Subjects
Publication in research information system
Publisher
Springer
The permanent address of the publication
https://urn.fi/URN:NBN:fi:jyu-202305193097Käytä tätä linkitykseen.
Review status
Peer reviewed
ISSN
1569-5239
DOI
https://doi.org/10.1007/s11150-023-09657-7
Language
English
Published in
Review of Economics of the Household
Citation
- 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
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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).
Copyright© 2023 the Authors