taken account of by parents. Optimal corrective subsidies are highly correlated with taxed paid by secondary earners. In a …-use subsidies" mitigates such distortions and can also counter excessive levels of subsidies for external child care. …

market care subsidies vs. cash for care. Policies are determined by probabilistic voting, where allocative and distributional … likely to receive subsidies. In early stages of development where most households are traditional, implemented policies … favour them, though to a small extent. Net subsidies to traditional households are highest in some intermediate stage, which …

, subsidies for external child care, and parental leave payments. We compare the impact on the quantity and quality of children …, the secondary earner's labor supply and welfare. Child benefits and subsidies for external child care are more effective … in balancing family and work than parental leave payments. The welfare analysis shows that the introduction of subsidies …