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Childcare closures and female entrepreneurship

Author

Listed:
  • Tessa Conroy

    (University of Wisconsin–Madison)

  • Anil Rupasingha

    (USDA - Economic Research Service)

Abstract

In the absence of childcare, self-employment may be an attractive option for women needing to earn an income and care for children. To study the impact of childcare on women’s entrepreneurial activity, we use a quasi-experimental framework based on regional variation in childcare availability. Treated counties, those facing a childcare closure policy during the COVID-19 pandemic, are matched with an untreated control group of counties to identify the effect of closure on female entrepreneurship. Our results suggest that treated counties saw an increase in the number of new female-owned businesses as a result of childcare closures indicating an important relationship between local childcare availability and women’s labor force outcomes. The result is robust to several estimation techniques. These results, observed only one year post-treatment, may reflect a temporary adaptation rather than a sustained shift in women’s entrepreneurial activities.

Suggested Citation

  • Tessa Conroy & Anil Rupasingha, 2025. "Childcare closures and female entrepreneurship," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 74(2), pages 1-28, June.
    • Handle: RePEc:spr:anresc:v:74:y:2025:i:2:d:10.1007_s00168-025-01393-3
    DOI: 10.1007/s00168-025-01393-3
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    More about this item

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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