Assuming a two-period model with endogenous choices of labor, education, and saving, efficient education policy is characterized for a Ramsey-like scenario in which the government is constrained to use linear instruments. It is shown that education should be effectively subsidized if, and only...

Assuming a two-period model with endogenous choices of labour, education, and saving, it is shown to be second-best efficient to deviate from Ramsey’s Rule and to distort qualified labour less than nonqualified labour. The result holds for arbitrary utility and learning functions. Efficient...

This paper studies second best policies for education, saving, and labour in an OLG model in which endogenous growth results from human capital accumulation. Government expenditures have to be financed by linear instruments so that growth equilibria are inefficient. The inefficiency is...

The paper studies the effect that skilled labour mobility has on efficient education policy. The model is one of two periods in which a representative taxpayer decides on labour, education, and saving. The government can only use linear tax and subsidy instruments. It is shown that the mobility...

This paper studies the effect of child care provision on family structure. We present a model of a marriage market with positive assortative matching, where in equilibrium the poorest women stay single. Couples have to decide on the number of children and spousal specialization in home...

Public child care is expected to assist families in reconciling work with family life. Yet, empirical evidence for the relevance of public child care to maternal employment is inconclusive. We exploit the introduction of a legal claim to a place in kindergarten in Germany, which was contingent...

We document the spatial diffusion of Friedrich Froebel’s radical invention of kindergartens in 19th-century Germany. The first kindergarten was founded at Froebel’s birthplace. Early spatial diffusion can be explained by cultural proximity, measured by historical dialect similarity, to...

What role does affordable and widely available public child care play for fertility? We exploit a major German reform generating large temporal and spatial variation in child care coverage for children under the age of three. Our precise and robust estimates on birth register data reveal that...

What is the role of politics in shaping attitudes about appropriate roles for women in the family and the compatibility of work and motherhood? In this paper we argue that the German separation and later reunification produced a natural experiment to address this question. During the divided...

Many governments have banned strikes in public transportation. Whether this can be justified depends on whether strikes endanger public safety or health. We use time-series and cross-sectional variation in powerful registry data to quantify the effects of public transit strikes on urban...