IDEAS home Printed from https://ideas.repec.org/p/fip/fedawp/94784.html
   My bibliography  Save this paper

Does Access to Free Pre-Kindergarten Increase Maternal Labor Supply?

Author

Listed:
  • Elias Ilin
  • Samantha Shampine
  • Ellyn Terry

Abstract

In this paper, we evaluate the effects of free pre-kindergarten (pre-K) programs on the labor force participation (LFP) of mothers. We use variation in pre-K rules across all US states, including income eligibility requirements in some states. To estimate the causal effects of access to pre-K on labor supply, we exploit the panel aspect of the monthly Current Population Survey between 2002 and 2019. Specifically, we look at the change in labor market behavior of women when their child becomes age-eligible for pre-K, controlling for individual factors. We find that access to free pre-K programs increases overall maternal LFP by 2.3 percentage points. In particular, we find that mothers with the following demographic characteristics significantly increase their labor supply as a result of an access to free pre-K: married, college educated, residents of metropolitan areas, and with income either below 200 percent or above 400 percent of the federal poverty level. Our results are robust across a series of placebo tests and alternative specifications and sample restrictions.

Suggested Citation

  • Elias Ilin & Samantha Shampine & Ellyn Terry, 2022. "Does Access to Free Pre-Kindergarten Increase Maternal Labor Supply?," FRB Atlanta Working Paper 2022-3, Federal Reserve Bank of Atlanta.
    • Handle: RePEc:fip:fedawp:94784
    DOI: 10.29338/wp2022-03
    Note: The authors thank participants of the Society of Economics of the Household 2021 conference, seminar participants at Boston University, and the Federal Reserve Bank of Kansas City for their insightful comments. The views expressed here are those of the authors and not necessarily those of the Federal Reserve Bank of Atlanta or the Federal Reserve System. Any remaining errors are the authors' responsibility.
    as

    Download full text from publisher

    File URL: https://www.atlantafed.org/-/media/documents/research/publications/wp/2022/02/02/03--does-access-to-free-pre-kindergarten-increase-maternal-labor-supply.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.29338/wp2022-03?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Francine D. Blau & Lawrence M. Kahn, 2007. "Changes in the Labor Supply Behavior of Married Women: 1980–2000," Journal of Labor Economics, University of Chicago Press, vol. 25(3), pages 393-438.
    2. Jonah B. Gelbach, 2002. "Public Schooling for Young Children and Maternal Labor Supply," American Economic Review, American Economic Association, vol. 92(1), pages 307-322, March.
    3. Henrik Kleven & Camille Landais & Jakob Egholt Søgaard, 2019. "Children and Gender Inequality: Evidence from Denmark," American Economic Journal: Applied Economics, American Economic Association, vol. 11(4), pages 181-209, October.
    4. Jill S. Cannon & Alison Jacknowitz & Gary Painter, 2006. "Is full better than half? Examining the longitudinal effects of full-day kindergarten attendance," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 25(2), pages 299-321.
    5. 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.
    6. Pierre Lefebvre & Philip Merrigan, 2005. "Low-fee ($5/day/child) Regulated Childcare Policy and the Labor Supply of Mothers with Young Children: A Natural Experiment from Canada," CIRANO Working Papers 2005s-09, CIRANO.
    7. Michael Baker & Jonathan Gruber & Kevin Milligan, 2008. "Universal Child Care, Maternal Labor Supply, and Family Well-Being," Journal of Political Economy, University of Chicago Press, vol. 116(4), pages 709-745, August.
    8. Havnes, Tarjei & Mogstad, Magne, 2011. "Money for nothing? Universal child care and maternal employment," Journal of Public Economics, Elsevier, vol. 95(11), pages 1455-1465.
    9. Marcia Meyers & Theresa Heintze & Douglas Wolf, 2002. "Child care subsidies and the employment of welfare recipients," Demography, Springer;Population Association of America (PAA), vol. 39(1), pages 165-179, February.
    10. 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).
    11. Marianne Bertrand & Claudia Goldin & Lawrence F. Katz, 2010. "Dynamics of the Gender Gap for Young Professionals in the Financial and Corporate Sectors," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 228-255, July.
    12. Maria Donovan Fitzpatrick, 2012. "Revising Our Thinking About the Relationship Between Maternal Labor Supply and Preschool," Journal of Human Resources, University of Wisconsin Press, vol. 47(3), pages 583-612.
    13. Sean P. Sall, 2014. "Maternal Labor Supply And The Availability Of Public Pre-K: Evidence From The Introduction Of Prekindergarten Into American Public Schools," Economic Inquiry, Western Economic Association International, vol. 52(1), pages 17-34, January.
    14. Taryn W. Morrissey, 2017. "Child care and parent labor force participation: a review of the research literature," Review of Economics of the Household, Springer, vol. 15(1), pages 1-24, March.
    15. David Blau & Erdal Tekin, 2007. "The determinants and consequences of child care subsidies for single mothers in the USA," Journal of Population Economics, Springer;European Society for Population Economics, vol. 20(4), pages 719-741, October.
    16. Bradley T. Heim, 2007. "The Incredible Shrinking Elasticities: Married Female Labor Supply, 1978–2002," Journal of Human Resources, University of Wisconsin Press, vol. 42(4).
    17. Terri J. Sabol & P. Lindsay Chase‐Lansdale, 2015. "The Influence of Low‐Income Children's Participation in Head Start on Their Parents’ Education and Employment," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 34(1), pages 136-161, January.
    Full references (including those not matched with items on IDEAS)

    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. Elias Ilin & Samantha Shampine & Ellyn Terry, 2021. "Does Access to Free Pre-Kindergarten Increase Maternal Labor Supply?," Research Working Paper RWP 21-11, Federal Reserve Bank of Kansas City.
    2. Taryn W. Morrissey, 2017. "Child care and parent labor force participation: a review of the research literature," Review of Economics of the Household, Springer, vol. 15(1), pages 1-24, March.
    3. Elizabeth E. Davis & Caroline Carlin & Caroline Krafft & Nicole D. Forry, 2018. "Do Child Care Subsidies Increase Employment Among Low-Income Parents?," Journal of Family and Economic Issues, Springer, vol. 39(4), pages 662-682, December.
    4. 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.
    5. 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).
    6. Brewer, Mike & Cattan, Sarah & Crawford, Claire & Rabe, Birgitta, 2022. "Does more free childcare help parents work more?," Labour Economics, Elsevier, vol. 74(C).
    7. Berthelon, Matias & Kruger, Diana & Lauer, Catalina & Tiberti, Luca & Zamora, Carlos, 2020. "Longer School Schedules, Childcare and the Quality of Mothers’ Employment: Evidence from School Reform in Chile," GLO Discussion Paper Series 525, Global Labor Organization (GLO).
    8. Kozhaya, Mireille, 2022. "The double burden: The impact of school closures on labor force participation of mothers," Ruhr Economic Papers 956, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    9. Cuiping Schiman, 2022. "Experimental evidence of the effect of head start on mothers’ labor supply and human capital investments," Review of Economics of the Household, Springer, vol. 20(1), pages 199-241, March.
    10. Huber, Katrin & Rolvering, Geske, 2023. "Public Child Care and Mothers' Career Trajectories," IZA Discussion Papers 16433, Institute of Labor Economics (IZA).
    11. Herbst, Chris M., 2013. "Universal Child Care, Maternal Employment, and Children's Long-Run Outcomes: Evidence from the U.S. Lanham Act of 1940," IZA Discussion Papers 7846, Institute of Labor Economics (IZA).
    12. Cortes, Patricia & Pan, Jessica, 2020. "Children and the Remaining Gender Gaps in the Labor Market," IZA Discussion Papers 13759, Institute of Labor Economics (IZA).
    13. 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.
    14. Christina Gathmann & Björn Sass, 2018. "Taxing Childcare: Effects on Childcare Choices, Family Labor Supply, and Children," Journal of Labor Economics, University of Chicago Press, vol. 36(3), pages 665-709.
    15. 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.
    16. Matias Berthelon & Diana Kruger & Melanie Oyarzún, 2023. "School schedules and mothers’ employment: evidence from an education reform," Review of Economics of the Household, Springer, vol. 21(1), pages 131-171, March.
    17. Felfe, Christina & Lechner, Michael & Thiemann, Petra, 2016. "After-school care and parents' labor supply," Labour Economics, Elsevier, vol. 42(C), pages 64-75.
    18. Barua, Rashmi, 2014. "Intertemporal substitution in maternal labor supply: Evidence using state school entrance age laws," Labour Economics, Elsevier, vol. 31(C), pages 129-140.
    19. Pihl, Ariel Marek, 2022. "Head Start and mothers’ work: Free child care or something more?," Labour Economics, Elsevier, vol. 75(C).
    20. Busse, Anna & Gathmann, Christina, 2018. "Free Daycare and its Effects on Children and their Families," IZA Discussion Papers 11269, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    maternal labor force participation; childcare policies; universal pre-K; gender equality policies; early education policies;
    All these keywords.

    JEL classification:

    • G50 - Financial Economics - - Household Finance - - - General
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

    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:fip:fedawp:94784. 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: Rob Sarwark (email available below). General contact details of provider: https://edirc.repec.org/data/frbatus.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.