Equity and Efficiency of Childcare Subsidies: A Dynamic Structural Approach
Type
conference speech
Date Issued
2022-05-30
Author(s)
Koll, David
Sachs, Dominik
Stuermer-Heiber, Fabian
Turon, Hélène
Abstract (De)
Governments use different instruments to redistribute income: besides incomes taxes, different forms of income-contingent subsidies are provided. In this paper, we compare the efficiency of two large redistribution instruments in Germany: childcare subsidies and the income tax. We quantify this comparison in a dynamic discrete choice model that accounts for the endogenous dynamics of mothers’ lifecycle earnings.