Childcare Subsidies and Household Labor Supply

  title={Childcare Subsidies and Household Labor Supply},
  author={N. Kartal Guner and Remzi Kaygusuz and Gustavo de Castro Ventura},
We evaluate the macroeconomic implications of childcare subsidies in a life-cycle model with heterogeneous married and single households, costly childbearing and with an extensive margin in labor supply for married females. We discipline our model with U.S. observations on the cost of childcare in the presence of existing childcare subsidy programs, as well as with data on gender and skill premia and the labor force participation of married females across skill groups. Our findings indicate… CONTINUE READING


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