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The Excess Demand for Subsidized Child Care in Germany

Discussion Papers 470, 20 S.

Katharina Wrohlich

2005. Jan.

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Published in: Applied Economics 40 (2007) 10, 1217-1228


The extension of subsidized child care is currently on the top of the political agenda in Germany. In this paper the excess demand for subsidized child care slots is estimated using a partial observability model in the style of Abowd and Farber (1982). The results show that more than 50 percent of children aged 0-3 are queuing for child care slots, whereas only 10 percent of children aged 4-6 years are queuing. For children in the younger age group about 255,000 child care slots are missing. This number comes close to the government's plan to expand subsidized child care by 230,000 slots.

Katharina Wrohlich

Head in the Gender Economics Department

Topics: Family, Education

JEL-Classification: J13;C35;D12
Keywords: Child care; Excess demand; Partial observability model
Frei zugängliche Version: (econstor)