IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/17243.html
   My bibliography  Save this paper

Childcare, labor supply, and business development: Experimental evidence from Uganda

Author

Listed:
  • Bjorvatn, Kjetil
  • Ferris, Denise
  • Gulesci, Selim
  • Nasgowitz, Arne
  • Somville, Vincent
  • Vandewalle, Lore

Abstract

In a field experiment in Uganda, mothers of young children are randomly offered a childcare subsidy, an equivalent cash grant, both or nothing. Childcare leads to a 44 percent increase in household income, which is at least as large as the impact of the cash grant and driven by an increase in mothers' business revenues and fathers' wage earnings. The childcare subsidy also improves child development while the cash grant does not. Overall, our findings demonstrate that childcare subsidies can be an effective policy to simultaneously promote child development and reduce poverty in a low-income context.

Suggested Citation

  • Bjorvatn, Kjetil & Ferris, Denise & Gulesci, Selim & Nasgowitz, Arne & Somville, Vincent & Vandewalle, Lore, 2022. "Childcare, labor supply, and business development: Experimental evidence from Uganda," CEPR Discussion Papers 17243, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:17243
    as

    Download full text from publisher

    File URL: https://cepr.org/publications/DP17243
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Yoav Benjamini & Abba M. Krieger & Daniel Yekutieli, 2006. "Adaptive linear step-up procedures that control the false discovery rate," Biometrika, Biometrika Trust, vol. 93(3), pages 491-507, September.
    2. Robert W. Fairlie & Dean Karlan & Jonathan Zinman, 2015. "Behind the GATE Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training," American Economic Journal: Economic Policy, American Economic Association, vol. 7(2), pages 125-161, May.
    3. Jeffrey R Kling & Jeffrey B Liebman & Lawrence F Katz, 2007. "Experimental Analysis of Neighborhood Effects," Econometrica, Econometric Society, vol. 75(1), pages 83-119, January.
    4. David S. Lee, 2009. "Training, Wages, and Sample Selection: Estimating Sharp Bounds on Treatment Effects," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(3), pages 1071-1102.
    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. Gabriela Calderon & Jesse M. Cunha & Giacomo De Giorgi, 2020. "Business Literacy and Development: Evidence from a Randomized Controlled Trial in Rural Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 68(2), pages 507-540.
    2. Sylvia, Sean & Luo, Renfu & Zhong, Jingdong & Dill, Sarah-Eve & Medina, Alexis & Rozelle, Scott, 2022. "Passive versus active service delivery: Comparing the effects of two parenting interventions on early cognitive development in rural China," World Development, Elsevier, vol. 149(C).
    3. Sara Heller & Harold A. Pollack & Roseanna Ander & Jens Ludwig, 2013. "Preventing Youth Violence and Dropout: A Randomized Field Experiment," NBER Working Papers 19014, National Bureau of Economic Research, Inc.
    4. Bhanot, Syon P. & Crost, Benjamin & Leight, Jessica & Mvukiyehe, Eric & Yedgenov, Bauyrzhan, 2021. "Can community service grants foster social and economic integration for youth? A randomized trial in Kazakhstan," Journal of Development Economics, Elsevier, vol. 153(C).
    5. Antonia Grohmann & Lukas Menkhoff & Helke Seitz, 2022. "The Effect of Personalized Feedback on Small Enterprises’ Finances in Uganda," Economic Development and Cultural Change, University of Chicago Press, vol. 70(3), pages 1197-1227.
    6. Yuanyuan Chen & Zichen Deng, 2019. "Liquidity Constraint Shock, Job Search and Post Match Quality—Evidence from Rural-to-Urban Migrants in China," Journal of Labor Research, Springer, vol. 40(3), pages 332-355, September.
    7. Samuel Bazzi & Lisa Cameron & Simone Schaner & Firman Witoelar, 2021. "Information, Intermediaries, and International Migration," Melbourne Institute Working Paper Series wp2021n30, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    8. Blimpo, Moussa P. & Pugatch, Todd, 2021. "Entrepreneurship education and teacher training in Rwanda," Journal of Development Economics, Elsevier, vol. 149(C).
    9. Lambon-Quayefio, Monica & Peterman, Amber & Handa, Sudhanshu & Molotsky, Adria & Otchere, Frank & Mvula, Peter & Tsoka, Maxton & de Hoop, Jacobus & Angeles, Gustavo & Kilburn, Kelly & Milazzo, Annamar, 2024. "Unconditional cash transfers and safe transitions to adulthood in Malawi," World Development, Elsevier, vol. 175(C).
    10. Robert W. Fairlie & Dean Karlan & Jonathan Zinman, 2015. "Behind the GATE Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training," American Economic Journal: Economic Policy, American Economic Association, vol. 7(2), pages 125-161, May.
    11. Diana Moreira & Santiago Pérez, 2022. "Who Benefits from Meritocracy?," NBER Working Papers 30113, National Bureau of Economic Research, Inc.
    12. Felipe A. Dunsch & David K. Evans & Ezinne Eze-Ajoku & Mario Macis, 2017. "Management, Supervision, and Health Care: A Field Experiment," NBER Working Papers 23749, National Bureau of Economic Research, Inc.
    13. Henning Hermes & Philipp Lergetporer & Frauke Peter & Simon Wiederhold, 2021. "Application Barriers and the Socioeconomic Gap in Child Care Enrollment," CESifo Working Paper Series 9282, CESifo.
    14. Tamim, Abdulrazzak & Smith, Emma & Palmer, I. Bailey & Miguel, Edward & Oparina, Ekaterina & Rozo, Sandra V. & Stillman, Sarah, 2025. "Housing Subsidies for Refugees: Experimental Evidence on Life Outcomes and Social Integration in Jordan," IZA Discussion Papers 17622, Institute of Labor Economics (IZA).
    15. Eliana Carranza & Robert Garlick & Kate Orkin & Neil Rankin, 2020. "Job Search and Hiring with Two-sided Limited Information about Workseekers’ Skills," CSAE Working Paper Series 2020-10, Centre for the Study of African Economies, University of Oxford.
    16. Bonan, Jacopo & Battiston, Pietro & Bleck, Jaimie & LeMay-Boucher, Philippe & Pareglio, Stefano & Sarr, Bassirou & Tavoni, Massimo, 2021. "Social interaction and technology adoption: Experimental evidence from improved cookstoves in Mali," World Development, Elsevier, vol. 144(C).
    17. Lubega, Patrick & Nakakawa, Frances & Narciso, Gaia & Newman, Carol & Kaaya, Archileo N. & Kityo, Cissy & Tumuhimbise, Gaston A., 2021. "Body and mind: Experimental evidence from women living with HIV," Journal of Development Economics, Elsevier, vol. 150(C).
    18. Maitra, Pushkar & Mani, Subha, 2017. "Learning and earning: Evidence from a randomized evaluation in India," Labour Economics, Elsevier, vol. 45(C), pages 116-130.
    19. Vilsa E. Curto & Roland G. Fryer Jr., 2014. "The Potential of Urban Boarding Schools for the Poor: Evidence from SEED," Journal of Labor Economics, University of Chicago Press, vol. 32(1), pages 65-93.
    20. Afridi, Farzana & Barooah, Bidisha & Somanathan, Rohini, 2020. "Improving learning outcomes through information provision: Experimental evidence from Indian villages," Journal of Development Economics, Elsevier, vol. 146(C).

    More about this item

    Keywords

    Childcare; Pre-school; Cash transfers; Income; Labor supply; entrepreneurship; Gender; Child development;
    All these keywords.

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

    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:cpr:ceprdp:17243. 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: the person in charge (email available below). General contact details of provider: https://www.cepr.org .

    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.