TY  - RPRT
        AU  - Brink, Anne
AU  - Nordblom, Katarina
AU  - Wahlberg, Roger
        TI  - Maximum Fee vs. Child Benefit: A Welfare Analysis of Swedish Child-Care Fee Reform
        PY  - 2007/Apr/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 2748
        UR  - https://www.iza.org/index.php/publications/dp2748
        AB  - The effects of a recent Swedish child-care fee reform are compared with those of an alternative reform, increased child benefits. The fee reform implied considerably decreased fees and was intended to increase both labor supply among parents and their economic well-being. We estimate labor supply effects using a discrete choice labor supply model, and simulate behavioral responses to the changes. We find positive, but small, effects on labor supply from reduced fees, while increased child benefits would make single mothers decrease their labor supply. On the other hand, increased child benefits would make income distribution more equal. We make a social welfare comparison and conclude that for plausible values of inequality aversion, the alternative reform would have been preferable to the implemented fee reform.
        KW  - labor supply
KW  - redistribution
KW  - reform
KW  - child care
KW  - fees
KW  - child benefit
        ER  -