2007-04-21 papers

on Public Finance

Issue of 2007‒04‒21
two papers chosen by

Maximum Fee vs. Child Benefit: A Welfare Analysis of Swedish Child-Care Fee Reform By Anna Brink; Katarina Nordblom; Roger Wahlberg
Women and budget deficits By Sébastien Wälti; Signe Krogstrup

Maximum Fee vs. Child Benefit: A Welfare Analysis of Swedish Child-Care Fee Reform

By:	Anna Brink (Ministry of Finance, Sweden); Katarina Nordblom (Göteborg University); Roger Wahlberg (Göteborg University and IZA)
Abstract:	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 wellbeing. 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.
Keywords:	labor supply, redistribution, reform, child care, fees, child benefit
JEL:	H31 I38 J22
Date:	2007–04
URL:	http://d.repec.org/n?u=RePEc:iza:izadps:dp2748&r=pub

Women and budget deficits

By:	Sébastien Wälti (Department of Economics, Trinity College Dublin); Signe Krogstrup (Graduate Institute of International Studies, Geneva)
Abstract:	If women have different economic preferences than men, then female economic and political empowerment is likely to change policy and household decisions, and in turn macroeconomic outcomes. We test the hypothesis that female enfranchisement leads to lower government budget deficits due gender differences in preferences over fiscal outcomes. Estimating the impact of women’s vote on budget deficits in a differences-in-differences regression for Swiss cantonal panel data, we find that including women in the electorate reduces average per capita budget deficits by a statistically significant amount.
Keywords:	Fiscal policy, budget deficit, enfranchisement, median voter, gender
JEL:	D7 E6 H6 J16
Date:	2006–09
URL:	http://d.repec.org/n?u=RePEc:tcd:tcduee:tep0307&r=pub

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