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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
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    1. Janzen, Sarah & Magnan, Nicholas & Mullally, Conner & Sharma, Shruti & Shrestha, Bhola, 2025. "Going the distance: Hybrid vocational training for women in Nepal," Journal of Development Economics, Elsevier, vol. 174(C).

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    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

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