How the local supply of day-care centers influences fertility in Norway: A parity-specific approach

In order to assess how expansion of day care facilities affects fertility, the Norwegian Family and Occupation Survey of 1988 was linked with individual register-based migration histories and time-series data on day-care coverage rates in all Norwegian municipalities. Many factors affect both the allocation of resources to day-care centers and a woman's probability of giving birth. The local coverage rate is positively associated with the probability of advancing from parity two, after control for geographical region, degree of urbanization and other confounders. This effect of day-care supply, which is significant at low coverage levels, contributed to a moderate rise in third-birth rates after the mid-1970s. However, if the aggregate employment rate for women is also regarded as a confounder, the effect of day care may actuary be insignificant. Moreover, the effect fades at higher coverage levels. Finally, there are indications that second- and first-birth probabilities decline with increasing provision of day care. These results suggest that further efforts to improve the supply of private and public day care - which in Norway are likely to be motivated by non-demographic concerns - will have little stimulating effect on fertility, at least if the subsidies and quality of care remain unchanged.