Question

The Swedish government wanted to boost the workforce participation rate in the country. One step it took was to fund childcare and preschools. As a result of this and other policies, around 75 percent of Sweden’s working-age population is now employed.

Which statement best explains how the government’s childcare policy helped it achieve its economic goal?

The policy provided employment for preschool teachers.
The policy made it easier for parents of young children to work.
The policy created jobs for the parents of preschool-aged children.
The policy encouraged businesses to hire more workers.

Answer 1

The policy made it easier for parents of young children to work.

Subsidized childcare reduces the time and cost barriers for parents (especially mothers) to enter and stay in the labor force, increasing overall workforce participation.