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Effects of subsidized childcare on mothers’ labor supply under a rationing mechanism

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  • Yamaguchi, Shintaro
  • Asai, Yukiko
  • Kambayashi, Ryo

Abstract

We estimate the marginal treatment effect of childcare use on mothers’ labor market outcomes by using a staggered expansion of childcare services across regions in Japan. The estimates show that the heterogeneous treatment effects are negatively associated with the propensity to use childcare, which implies that mothers who increase their labor supply the least when subjected to the treatment are those mothers with the highest underlying tendency to use childcare. Because the childcare rationing rule tends to allocate childcare slots to mothers who work full-time before they apply, the slots tend to go to mothers who have the strongest labor force attachment, who are also the mothers who tend to have the strongest propensity to use childcare.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:labeco:v:55:y:2018:i:c:p:1-17
    DOI: 10.1016/j.labeco.2018.09.002
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    Cited by:

    1. Benjamin Scharadin & Edward C. Jaenicke, 2020. "Time spent on childcare and the household Healthy Eating Index," Review of Economics of the Household, Springer, vol. 18(2), pages 357-386, June.
    2. LIU Yang & HAGIWARA Risa, 2023. "Female Labor Force Participation in Japan: An epidemiological approach using native and immigrant data," Discussion papers 23023, Research Institute of Economy, Trade and Industry (RIETI).
    3. Akabayashi, Hideo & Ruberg, Tim & Shikishima, Chizuru & Yamashita, Jun, 2023. "Education-oriented and care-oriented preschools: Implications on child development," Labour Economics, Elsevier, vol. 84(C).
    4. 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.
    5. Hideo Akabayashi & TIm Ruberg & Chizuru Shikishima & Jun Yamashita, 2023. "Education-Oriented and Care-Oriented Preschools:Implications on Child Development," Keio-IES Discussion Paper Series 2023-009, Institute for Economics Studies, Keio University.
    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. Eiji Yamamura, 2021. "Do You Want Sustainable Olympics? Environment, Disaster, Gender, and the 2020 Tokyo Olympics," Sustainability, MDPI, vol. 13(22), pages 1-14, November.
    8. Zhang, Chi & Managi, Shunsuke, 2020. "Functional social support and maternal stress: A study on the 2017 paid parental leave reform in Japan," Economic Analysis and Policy, Elsevier, vol. 65(C), pages 153-172.
    9. Pierre Pora, 2020. "Keep Working and Spend Less? Collective Childcare and Parental Earnings in France," EconomiX Working Papers 2020-29, University of Paris Nanterre, EconomiX.
    10. Daiji Kawaguchi & Keisuke Kawata & Takahiro Toriyabe, 2021. "An Assessment of Abenomics from the Labor Market Perspective," Asian Economic Policy Review, Japan Center for Economic Research, vol. 16(2), pages 247-278, July.
    11. Zhang, Chi & Managi, Shunsuke, 2021. "Childcare availability and maternal employment: New evidence from Japan," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 83-105.
    12. HAGIWARA Risa & LIU Yang, 2023. "Work-life Conflicts of Native and Immigrant Women in Japan," Discussion papers 23056, Research Institute of Economy, Trade and Industry (RIETI).

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    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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