Female labour force participation,fertility and public policy in Sweden

This paper analyzes the role of public policy for Sweden's combination of high female labour force participation and high levels of fertility in the late 1980s and early 1990s. We present the central elements in the tax and family policies and use a disaggregated approach to assess their impact on Swedish fertility and female labour force participation. We show that these policies stimulate both fertility and women's paid work by reducing the costs of having children while requiring parents to be employed to collect full benefits.