IDEAS home Printed from https://ideas.repec.org/p/ces/ceswps/_10178.html
   My bibliography  Save this paper

Early Child Care, Maternal Labor Supply, and Gender Equality: A Randomized Controlled Trial

Author

Listed:
  • Henning Hermes
  • Marina Krauß
  • Philipp Lergetporer
  • Frauke Peter
  • Simon Wiederhold

Abstract

We provide experimental evidence that enabling access to universal early child care increases maternal labor supply and promotes gender equality among families with lower socioeconomic status (SES). Our intervention offers information and customized help with child care applications, leading to a boost in child care enrollment among lower-SES families. 18 months after the intervention, we find substantial increases in maternal full-time employment (+160%), maternal earnings (+22%), and household income (+10%). Intriguingly, the positive employment effects are not only driven by extended hours at child care centers, but also by an increase in care hours by fathers. Gender equality also benefits more broadly from better access to child care: The treatment improves a gender equality index that combines information on intra-household division of working hours, care hours, and earnings by 40% of a standard deviation, with significant increases in each dimension. For higher-SES families, we consistently observe negligible, insignificant treatment effects.

Suggested Citation

  • Henning Hermes & Marina Krauß & Philipp Lergetporer & Frauke Peter & Simon Wiederhold, 2022. "Early Child Care, Maternal Labor Supply, and Gender Equality: A Randomized Controlled Trial," CESifo Working Paper Series 10178, CESifo.
  • Handle: RePEc:ces:ceswps:_10178
    as

    Download full text from publisher

    File URL: https://www.cesifo.org/DocDL/cesifo1_wp10178.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Carta, Francesca & Rizzica, Lucia, 2018. "Early kindergarten, maternal labor supply and children's outcomes: Evidence from Italy," Journal of Public Economics, Elsevier, vol. 158(C), pages 79-102.
    2. Kai Fischer & Simon Martin & Philipp Schmidt-Dengler, 2023. "The Heterogeneous Effects of Entry on Prices," CESifo Working Paper Series 10566, CESifo.
    3. James Heckman & Rodrigo Pinto & Peter Savelyev, 2013. "Understanding the Mechanisms through Which an Influential Early Childhood Program Boosted Adult Outcomes," American Economic Review, American Economic Association, vol. 103(6), pages 2052-2086, October.
    4. Berniell, Inés & Berniell, Lucila & Mata, Dolores de la & Edo, María & Marchionni, Mariana, 2021. "Gender gaps in labor informality: The motherhood effect," Journal of Development Economics, Elsevier, vol. 150(C).
    5. James J. Heckman & Rodrigo Pinto, 2015. "Econometric Mediation Analyses: Identifying the Sources of Treatment Effects from Experimentally Estimated Production Technologies with Unmeasured and Mismeasured Inputs," Econometric Reviews, Taylor & Francis Journals, vol. 34(1-2), pages 6-31, February.
    6. Bertermann, Alexander & Kamhöfer, Daniel A. & Schildberg-Hörisch, Hannah, 2023. "More Education Does Make You Happier – Unless You Are Unemployed," IZA Discussion Papers 16454, Institute of Labor Economics (IZA).
    7. Thomas Cornelissen & Christian Dustmann & Anna Raute & Uta Schönberg, 2018. "Who Benefits from Universal Child Care? Estimating Marginal Returns to Early Child Care Attendance," Journal of Political Economy, University of Chicago Press, vol. 126(6), pages 2356-2409.
    8. Heckman, James J. & Landerso, Rasmus, 2021. "Lessons from Denmark about Inequality and Social Mobility," IZA Discussion Papers 14185, Institute of Labor Economics (IZA).
    9. Hanushek, Eric A. & Schwerdt, Guido & Wiederhold, Simon & Woessmann, Ludger, 2015. "Returns to skills around the world: Evidence from PIAAC," European Economic Review, Elsevier, vol. 73(C), pages 103-130.
    10. Goux, Dominique & Maurin, Eric, 2010. "Public school availability for two-year olds and mothers' labour supply," Labour Economics, Elsevier, vol. 17(6), pages 951-962, December.
    11. Damian Clarke & Joseph P. Romano & Michael Wolf, 2020. "The Romano–Wolf multiple-hypothesis correction in Stata," Stata Journal, StataCorp LP, vol. 20(4), pages 812-843, December.
    12. Barbara Boelmann & Anna Raute & Uta Schönberg, 2021. "Wind of Change? Cultural Determinants of Maternal Labor Supply," ECONtribute Discussion Papers Series 090, University of Bonn and University of Cologne, Germany.
    13. Michelle Harnisch & Kai-Uwe Müller & Michael Neumann, 2018. "Teilzeitbeschäftigte würden gerne mehr Stunden arbeiten, Vollzeitbeschäftigte lieber reduzieren," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 85(38), pages 837-846.
    14. Hermes, Henning & Lergetporer, Philipp & Peter, Frauke & Wiederhold, Simon, 2021. "Behavioral Barriers and the Socioeconomic Gap in Child Care Enrollment," Discussion Paper Series in Economics 16/2021, Norwegian School of Economics, Department of Economics.
    15. Lasse Eika & Magne Mogstad & Basit Zafar, 2019. "Educational Assortative Mating and Household Income Inequality," Journal of Political Economy, University of Chicago Press, vol. 127(6), pages 2795-2835.
    16. Claire Dujardin & Muriel Fonder & Bernard Lejeune, 2018. "Does Formal Child Care Availability for 0?3 Year Olds Boost Mothers' Employment Rate? Panel Data Based Evidence from Belgium," Annals of Economics and Statistics, GENES, issue 129, pages 103-126.
    17. Janet Currie, 2004. "The Take Up of Social Benefits," NBER Working Papers 10488, National Bureau of Economic Research, Inc.
    18. Goebel Jan & Grabka Markus M. & Liebig Stefan & Kroh Martin & Richter David & Schröder Carsten & Schupp Jürgen, 2019. "The German Socio-Economic Panel (SOEP)," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 239(2), pages 345-360, April.
    19. Tarjei Havnes & Magne Mogstad, 2011. "No Child Left Behind: Subsidized Child Care and Children's Long-Run Outcomes," American Economic Journal: Economic Policy, American Economic Association, vol. 3(2), pages 97-129, May.
    20. Eckhoff Andresen, Martin & Havnes, Tarjei, 2019. "Child care, parental labor supply and tax revenue," Labour Economics, Elsevier, vol. 61(C).
    21. Matthias Doepke & Fabian Kindermann, 2019. "Bargaining over Babies: Theory, Evidence, and Policy Implications," American Economic Review, American Economic Association, vol. 109(9), pages 3264-3306, September.
    22. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    23. Kandelhardt, Johannes, 2023. "Flexible estimation of random coefficient logit models of differentiated product demand," DICE Discussion Papers 399, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    24. Charlotte H. Feldhoff, 2021. "The Child Penalty: Implications of Parenthood on Labour Market Outcomes for Men and Women in Germany," SOEPpapers on Multidisciplinary Panel Data Research 1120, DIW Berlin, The German Socio-Economic Panel (SOEP).
    25. Marianne Bertrand & Emir Kamenica & Jessica Pan, 2015. "Gender Identity and Relative Income within Households," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(2), pages 571-614.
    26. Maria Donovan Fitzpatrick, 2010. "Preschoolers Enrolled and Mothers at Work? The Effects of Universal Prekindergarten," Journal of Labor Economics, University of Chicago Press, vol. 28(1), pages 51-85, January.
    27. Barbara Boelmann & Anna Christina Raute & Uta Schönberg, 2021. "Wind of Change? Cultural Determinants of Maternal Labor Supply," CESifo Working Paper Series 9094, CESifo.
    28. Fischer, Kai & Martin, Simon & Schmidt-Dengler, Philipp, 2023. "The heterogeneous effects of entry on prices," DICE Discussion Papers 404, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    29. Bertermann, Alexander & Kamhöfer, Daniel A. & Schildberg-Hörisch, Hannah, 2023. "More education does make you happier - unless you are unemployed," DICE Discussion Papers 406, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    30. Orazio Attanasio & Ricardo Paes de Barros & Pedro Carneiro & David K. Evans & Lycia Lima & Pedro Olinto & Norbert Schady, 2022. "Public Childcare, Labor Market Outcomes of Caregivers, and Child Development: Experimental Evidence from Brazil," NBER Working Papers 30653, National Bureau of Economic Research, Inc.
    31. Elizabeth U. Cascio, 2021. "Early Childhood Education in the United States: What, When, Where, Who, How, and Why," NBER Working Papers 28722, National Bureau of Economic Research, Inc.
    32. Felfe, Christina & Lalive, Rafael, 2018. "Does early child care affect children's development?," Journal of Public Economics, Elsevier, vol. 159(C), pages 33-53.
    33. Bauernschuster, Stefan & Schlotter, Martin, 2015. "Public child care and mothers' labor supply—Evidence from two quasi-experiments," Journal of Public Economics, Elsevier, vol. 123(C), pages 1-16.
    34. Elizabeth U. Cascio, 2009. "Maternal Labor Supply and the Introduction of Kindergartens into American Public Schools," Journal of Human Resources, University of Wisconsin Press, vol. 44(1).
    35. Henning Hermes & Philipp Lergetporer & Frauke Peter & Simon Wiederhold, 2021. "Application Barriers and the Socioeconomic Gap in Child Care Enrollment," CESifo Working Paper Series 9282, CESifo.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hermes, Henning & Lergetporer, Philipp & Peter, Frauke & Wiederhold, Simon, 2021. "Behavioral Barriers and the Socioeconomic Gap in Child Care Enrollment," Discussion Paper Series in Economics 16/2021, Norwegian School of Economics, Department of Economics.
    2. Huber, Katrin & Rolvering, Geske, 2023. "Public Child Care and Mothers' Career Trajectories," IZA Discussion Papers 16433, Institute of Labor Economics (IZA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hermes, Henning & Krauß, Marina & Lergetporer, Philipp & Peter, Frauke & Wiederhold, Simon, 2022. "Early Child Care and Labor Supply of Lower-SES Mothers: A Randomized Controlled Trial," IZA Discussion Papers 15814, Institute of Labor Economics (IZA).
    2. Hermes, Henning & Lergetporer, Philipp & Peter, Frauke & Wiederhold, Simon, 2021. "Behavioral Barriers and the Socioeconomic Gap in Child Care Enrollment," IZA Discussion Papers 14698, Institute of Labor Economics (IZA).
    3. Henning Hermes & Philipp Lergetporer & Frauke Peter & Simon Wiederhold, 2021. "Application Barriers and the Socioeconomic Gap in Child Care Enrollment," CESifo Working Paper Series 9282, CESifo.
    4. Pierre Lefebvre & Claude Felteau, 2023. "Can universal preschool education intensities counterbalance parental socioeconomic gradients? Repeated international evidence from Fourth graders skills achievement," Working Papers 23-01, Research Group on Human Capital, University of Quebec in Montreal's School of Management.
    5. Eric Schuss & Mohammed Azaouagh, 2021. "Combining parenthood and work: transmission channels and heterogeneous returns to early public childcare," Review of Economics of the Household, Springer, vol. 19(3), pages 641-676, September.
    6. Hermes, Henning & Mierisch, Fabian & Peter, Frauke & Wiederhold, Simon & Lergetporer, Philipp, 2023. "Discrimination on the Child Care Market: A Nationwide Field Experiment," IZA Discussion Papers 16082, Institute of Labor Economics (IZA).
    7. Yamaguchi, Shintaro & Asai, Yukiko & Kambayashi, Ryo, 2018. "Effects of subsidized childcare on mothers’ labor supply under a rationing mechanism," Labour Economics, Elsevier, vol. 55(C), pages 1-17.
    8. Daniel Kuehnle & Michael Oberfichtner, 2020. "Does Starting Universal Childcare Earlier Influence Children’s Skill Development?," Demography, Springer;Population Association of America (PAA), vol. 57(1), pages 61-98, February.
    9. Huebener, Mathias & Pape, Astrid & Spiess, C. Katharina, 2020. "Parental labour supply responses to the abolition of day care fees," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 510-543.
    10. Busse, Anna & Gathmann, Christina, 2018. "Free Daycare and its Effects on Children and their Families," IZA Discussion Papers 11269, Institute of Labor Economics (IZA).
    11. Rauh, Christopher & Boneva, Teodora & Kaufmann, Katja, 2021. "Maternal labor supply: Perceived returns, constraints, and social norms," CEPR Discussion Papers 16095, C.E.P.R. Discussion Papers.
    12. Francesca Carta, 2019. "Female labour supply in Italy: the role of parental leave and child care policies," Questioni di Economia e Finanza (Occasional Papers) 539, Bank of Italy, Economic Research and International Relations Area.
    13. Brewer, Mike & Cattan, Sarah & Crawford, Claire & Rabe, Birgitta, 2022. "Does more free childcare help parents work more?," Labour Economics, Elsevier, vol. 74(C).
    14. Greta Morando & Lucinda Platt, 2022. "The Impact of Centre‐based Childcare on Non‐cognitive Skills of Young Children," Economica, London School of Economics and Political Science, vol. 89(356), pages 908-946, October.
    15. Busse, Anna & Gathmann, Christina, 2020. "Free daycare policies, family choices and child development," Journal of Economic Behavior & Organization, Elsevier, vol. 179(C), pages 240-260.
    16. Ando, Michihito & Mori, Hiroaki & Yamaguchi, Shintaro, 2022. "Universal early childhood education and adolescent risky behavior," SocArXiv rnkgs, Center for Open Science.
    17. Padilla-Romo, María & Peluffo, Cecilia & Viollaz, Mariana, 2022. "Parents' Effective Time Endowment and Divorce: Evidence from Extended School Days," IZA Discussion Papers 15304, Institute of Labor Economics (IZA).
    18. Bettendorf, Leon J.H. & Jongen, Egbert L.W. & Muller, Paul, 2015. "Childcare subsidies and labour supply — Evidence from a large Dutch reform," Labour Economics, Elsevier, vol. 36(C), pages 112-123.
    19. Barschkett, Mara & Spieß, C. Katharina & Ziege, Elena, 2021. "Does Grandparenting Pay off for the Next Generations? Intergenerational Effects of Grandparental Care," IZA Discussion Papers 14795, Institute of Labor Economics (IZA).
    20. Müller, Kai-Uwe & Wrohlich, Katharina, 2020. "Does subsidized care for toddlers increase maternal labor supply? Evidence from a large-scale expansion of early childcare," Labour Economics, Elsevier, vol. 62(C).

    More about this item

    Keywords

    child care; maternal employment; gender equality; randomized controlled trial;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_10178. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/cesifde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.