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Public Child Care and Mothers' Labor Supply - Evidence from Two Quasi-Experiments

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  • Stefan Bauernschuster
  • Martin Schlotter

Abstract

Public child care is expected to assist families in reconciling work with family life. Yet, empirical evidence for the relevance of public child care to maternal employment is inconclusive. We exploit the introduction of a legal claim to a place in kindergarten in Germany, which was contingent on day-of-birth cut-off dates and resulted in a marked increase in kindergarten attendance of three-year olds in the following years. Instrumental variable and difference-indifferences estimations on two individual-level data sets yield large and positive effects of public child care on maternal employment. A set of placebo treatment tests corroborate the validity of our identification strategies.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2013/wp-cesifo-2013-04/cesifo1_wp4191.pdf
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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 4191.

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Date of creation: 2013
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Handle: RePEc:ces:ceswps:_4191

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Keywords: public child care; maternal employment;

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References

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  1. Maria Fitzpatrick, 2008. "Preschoolers Enrolled and Mothers at Work? The Effects of Universal Pre-Kindergarten," Discussion Papers, Stanford Institute for Economic Policy Research 08-001, Stanford Institute for Economic Policy Research.
  2. Katja Coneus & Kathrin Goeggel & Grit Muehler, 2009. "Maternal employment and child care decision," Oxford Economic Papers, Oxford University Press, vol. 61(suppl_1), pages i172-i188, April.
  3. 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).
  4. Lundin, Daniela & Mörk, Eva & Öckert, Björn, 2008. "How far can reduced childcare prices push female labour supply?," Labour Economics, Elsevier, Elsevier, vol. 15(4), pages 647-659, August.
  5. Christina Gathmann & Björn Sass, 2012. "Taxing Childcare: Effects on Family Labor Supply and Children," CESifo Working Paper Series 3776, CESifo Group Munich.
  6. Martin Schlotter, 2011. "Age at Preschool Entrance and Noncognitive Skills before School - An Instrumental Variable Approach," Ifo Working Paper Series Ifo Working Paper No. 112, Ifo Institute for Economic Research at the University of Munich.
  7. Pierre Lefebvre & Philip Merrigan, 2008. "Child-Care Policy and the Labor Supply of Mothers with Young Children: A Natural Experiment from Canada," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 26(3), pages 519-548, 07.
  8. Havnes, Tarjei & Mogstad, Magne, 2009. "Money for Nothing? Universal Child Care and Maternal Employment," IZA Discussion Papers 4504, Institute for the Study of Labor (IZA).
  9. Felix Büchel & C. Katharina Spieß, 2002. "Kindertageseinrichtungen und Müttererwerbstätigkeit: neue Erkenntnisse zu einem bekannten Zusammenhang," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 71(1), pages 95-113.
  10. Daphna Bassok & Maria Fitzpatrick & Susanna Loeb, 2012. "Does State Preschool Crowd-Out Private Provision? The Impact of Universal Preschool on the Childcare Sector in Oklahoma and Georgia," NBER Working Papers 18605, National Bureau of Economic Research, Inc.
  11. Samuel Berlinski & Sebastian Galiani & Patrick J. Mc Ewan, 2011. "Preschool and Maternal Labor Market Outcomes: Evidence from a Regression Discontinuity Design," Economic Development and Cultural Change, University of Chicago Press, vol. 59(2), pages 313 - 344.
  12. Alexander Bick, 2010. "The Quantitative Role of Child Care for Fertility and Female Labor Force Participation," 2010 Meeting Papers, Society for Economic Dynamics 892, Society for Economic Dynamics.
  13. Jonah B. Gelbach, 2002. "Public Schooling for Young Children and Maternal Labor Supply," American Economic Review, American Economic Association, American Economic Association, vol. 92(1), pages 307-322, March.
  14. Sebastian Galiani & Samuel Berlinski, 2005. "The Effect of a Large Expansion of Pre-Primary School Facilities on Preschool Attendance and Maternal Employment," Working Papers 77, Universidad de San Andres, Departamento de Economia, revised Aug 2005.
  15. David Blau, 2003. "Child Care Subsidy Programs," NBER Chapters, in: Means-Tested Transfer Programs in the United States, pages 443-516 National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Kai-Uwe Müller & Katharina Wrohlich, 2014. "Two Steps Forward - One Step Back?: Evaluating Contradicting Child Care Policies in Germany," Discussion Papers of DIW Berlin 1396, DIW Berlin, German Institute for Economic Research.
  2. Johannes Geyer & Peter Haan & Katharina Wrohlich, 2014. "The Effects of Family Policy on Mothers' Labor Supply: Combining Evidence from a Structural Model and a Natural Experiment," Discussion Papers of DIW Berlin 1366, DIW Berlin, German Institute for Economic Research.
  3. Stefan Bauernschuster & Oliver Falck, 2014. "Culture, Spatial Diffusion of Ideas and their Long-Lasting Imprints - Evidence from Froebel's Kindergarten Movement," CESifo Working Paper Series 4749, CESifo Group Munich.
  4. Stefan Bauernschuster & Rainald Borck, 2012. "The Effect of Child Care on Family Structure: Theory and Evidence," CESifo Working Paper Series 3763, CESifo Group Munich.
  5. Helmut Rainer & Wolfgang Auer & Stefan Bauernschuster & Natalia Danzer & Anita Fichtl & Timo Hener & Christian Holzner & Janina Reinkowski & Martin Werding, 2013. "Öffentlich geförderte Kinderbetreuung in Deutschland: Evaluierung der Auswirkungen auf die Arbeitsmarktbeteiligung von Müttern," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 66(07), pages 31-40, 04.

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