The cash-for-care benefit and daycare use : a quasi-experimental approach

Andersland, Leroy Egbeocha
Master thesis
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http://hdl.handle.net/11250/169281
Date
2011
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Abstract
This paper sets out to explore the effects of a cash incentive on parents’ choice of

daytime care for children in the age group 1-3 years. By studying the Norwegian

Cash-for-Care reform from 1998/1999 we are able to able to examine this through a

natural experiment. The results show a statistical significant decrease in use of

daycare for the total population, an effect that is stronger for families of low

socioeconomic status. This may work against stated long-term national goals. We are

not able to identify any changes in demand for the immigrant families in the sample.