Abstract: | ABSTRACT: In this article the hypothesis that a higher level of subsidized day-care facilities leads to an increase in female labour supply is tested for the Netherlands on the basis of two surveys. The results show that (allowing for the women's wage rate, her non-labour income, her age, and the presence of children) labour supply is higher when subsidized day-care supply is higher. However, after including variables that reflect social norms the effect of day-care supply on female labour supply, though still positive and significant, becomes much weaker. |