UCL Department of Economics


CReAM Brown Bag Seminar: Home Care or Formal Day Care? by Tuomas Kosonen

18 June 2019, 12:30 pm–1:30 pm

Home Care or Formal Day Care? The Effect of Home Care Allowance on Child Outcomes (joint with Jonathan Gruber and Kristiina Huttunen)

Event Information

Open to



Tuan Nguyen


Drayton House
Room 321
30 Gordon Street
United Kingdom

Abstract: We study the effects of child home care allowance that significantly increases parents' incentives to stay home with children under the age of three in Finland. Using a difference-in-differences model that exploits variation in the municipality-specific supplement to the allowance, we investigate the effects of the allowance on children’s outcomes from early childhood until adulthood.  Our results show that home care allowance decreases maternal employment and negatively affects the early childhood cognitive test results. On longer term we find that allowance increases youth crimes. However, we do not find any impact on  the longer run schooling outcomes. The results are more pronounced in municipalities that have higher average child care quality.


About the Speaker

Tuomas Kosonen

Research Director at Labour Institute for Economic Research

More about Tuomas Kosonen