The expansion of formal child care, particularly for children under the age of three, has resulted in more and more children from this age group attending day care facilities. This formal child care setting is frequently combined with care provided by grandparents or other individuals. The...

We study the effect of child care costs on the fertility behavior of Swedish women and find that reductions in child care charges influence fertility decisions, even when costs are initially highly subsidized. Exploiting the exogenous variation in child care costs caused by a Swedish child care...