American Economic Journal: Macroeconomics
no. 1, January 2023
I examine the role of family structure and childcare subsidies in child skill accumulation. I establish empirically that skill accumulation is more responsive to childcare price for one-parent families than for two-parent families. I analyze the effects of childcare subsidies in a model featuring endogenous family formation, parental altruism, and a baseline subsidy resembling that of the United States. I find that eliminating this subsidy generates welfare losses of 1.63 percent of lifetime consumption, that equilibrium adjustments act to mitigate these losses, and that increasing uptake among one-parent families yields the highest welfare gains per additional recipient.
Moschini, Emily G.
"Childcare Subsidies and Child Skill Accumulation in One- and Two-Parent Families."
American Economic Journal: Macroeconomics,
Analysis of Education
Returns to Education
Marriage; Marital Dissolution; Family Structure; Domestic Abuse
Fertility; Family Planning; Child Care; Children; Youth
Human Capital; Skills; Occupational Choice; Labor Productivity