Relatively high wages at the bottom of the wage distribution make it costly to hire professional household service providers (Albrecht et al., In Sweden, both men and women spend more time on household services than in the United States since their high cost and social norms against buying household services encourage people to perform their own household tasks rather than relying on market provision. Policies to improve wage flexibility at the lower end of the wage distribution, as proposed earlier in this paper, would lower the cost of in-house child-care. In 2007, a tax deduction for up to 50% of expenses for domestic household-related services was introduced, mainly to reduce the extent of informal economic activity. The fact that the tax deduction covers various domestic services including house renovation makes it hard to assess its impact on female employment outcomes. The impact of the tax deduction on female employment outcomes should be monitored.