We investigate the added worker effect in a setting where female labour supply is high and the welfare state is generous. We trace couples’ labour supply and income development following the husband’s job displacement. We find no support for the added worker effect for the full sample of...

From 1999, all parents in Norway with children aged one to three, who did not attend publicly subsidised daycare, became eligible for a cash-for-care (CFC) subsidy. One effect of the CFC-subsidy was to increase in the relative price of external child care. This article analyses whether the...