The Economics of Childcare. Alan Duncan University of Nottingham and Institute for Fiscal Studies http://www.nottingham.ac.uk/~lezad. The Economics of Childcare outline. Policy context Patterns of employment and childcare use Economic rationale for subsidising childcare
University of Nottingham
Institute for Fiscal Studies
Patterns of employment and childcare use
Economic rationale for subsidising childcare
Methods of intervention in the childcare market
Possible effects of childcare subsidies
Recent policy initiatives:
The UK government has recently introduced the Working Families’ Tax Credit (WFTC)
This begs some questions:
Why not allow the market for childcare to operate freely and privately?
The non-interventionist argument:
Market failure in the demand for childcare services
Incentive (demand) effects
Producer (supply) effects
What evidence is there that the WFTC, and the Childcare Credit, deliver significant additional employment incentives?
Evidence of small employment gains. Why so small?
Childcare Credit may provide the most important stimulus
From FC to WFTC, including CCTC