Payment for Childcare. What Happens When Families Get One, Two, or Three Children?

Working paper 08:2006 focused on the impact on the economic situation of a married couple from having a child. Maternity leave and payment for childcare were the main schemes involved, but taxation, child benefits and housing benefits were also of importance.
This paper is an enhancement of the just mentioned study, which only dealt with having the first child. The scope is now widened and child number 2 and 3 are included in the analysis. Only payment for childcare is included as ‘main’ scheme. The average ‘costs’ from having 1, 2 and 3 children attending day care simultaneously are calculated at varying income levels as well as the marginal ‘costs’ when the number of children is increased in ‘steps’ of one child.
The overall aim of both studies is to reveal how ‘family friendly’, measured in economic terms, the public schemes for maternity leave and payment for childcare are, when the families are having children, one or more. Six countries are included in the studies, i.e. Denmark, Sweden, Norway, Finland, Great Britain and Germany.