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The effect of subsidized childcare on female labor market participation in Costa Rica

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  • Quiros, Aníbal Jesús
  • Robalino, Juan

Abstract

In this study, we estimate the effects of the use of subsidized childcare on the probability of female participation in the labor market and on the numbers of hours worked in Costa Rica. We use household surveys and a combination of econometric techniques in order to control for potential bias. We find that females that belong to beneficiary households have between 9 and 14 additional percentage points in the probability to participate in the labor force. They also worked between 8 and 19 percent more than females that are not in the program. The effects on labor participation are larger for women that have not finished high school. The effects on the numbers of hours worked are larger for those in the poorest quintile. These results suggest that the expansion of this program can contribute to reduce the labor participation gender gap, which is larger among the poor. This, in turn, could lead to important reductions in poverty levels.

Suggested Citation

  • Quiros, Aníbal Jesús & Robalino, Juan, 2020. "The effect of subsidized childcare on female labor market participation in Costa Rica," Revista de Ciencias Económicas, Instituto de Investigaciones en Ciencias Económicas, Universidad de Costa Rica, vol. 38(2), December.
    • Handle: RePEc:rce:rvceco:45241
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    1. Natalia Nollenberger & Ivone Perazzo, 2016. "Efectos de la provisión universal de educación preescolar sobre la asistencia y la participación laboral femenina. Evidencia para el caso uruguayo," Documentos de Trabajo (working papers) 16-04, Instituto de Economía - IECON.
    2. Jose Rosero & Hessel Oosterbeek, 2011. "Trade-offs between Different Early Childhood Interventions: Evidence from Ecuador," Tinbergen Institute Discussion Papers 11-102/3, Tinbergen Institute.
    3. Gloriana Lang Clachar & Bridget Soto Méndez & Juan Robalino, 2015. "Efecto del programa “Avancemos” sobre el trabajo infantil en Costa Rica," Working Papers 201503, Universidad de Costa Rica, revised Nov 2015.
    4. Jenny Encina & Claudia Martínez, 2009. "Efecto de una mayor cobertura de salas cuna en la participación laboral femenina: evidencia de Chile," Working Papers wp303, University of Chile, Department of Economics.
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