Supply and Price of Childcare and Female Labour Force Participation in the Netherlands

Abstract

The childcare market has been emerging in the Netherlands since the first Child Care Stimulation Act in 1990. The Dutch government has chosen to increase availability and share the costs of childcare between government, employers and parents. We estimate the determinants of Dutch women's decisions to participate in the labour market and the use of paid childcare in 1995. Furthermore, we estimate the effect of the price of childcare on female labour supply. We discuss whether the route that is taken by the Dutch government regarding childcare leads to smaller dead weight losses than in Sweden.