Does Childcare Matter for Maternal Labor Supply? Pushing the limits of the Regression Discontinuity Framework
We use an extension of the RD approach based on a kindergarten enrollment cutoff date and a new resampling design to estimate the causal impact of subsidized childcare availability on Hungarian mothers' labor market participation around the 3rd birthday of the child. Besides standard fuzzy RD, which holds calendar time constant, we apply an alternative version where child's age is held constant, which enables us to (a) separate the childcare effect from other, age-specific effects, and (b) consider the effect of not only point, but interval cutoffs for eligibility. We combine RD with a difference-in-differences approach using a comparison group of mothers with children aged 4-5 to control for seasonal effects (parent selection, child development, within-year labor market fluctuations). Our estimates indicate that a mother with a 3 year old is 15% more likely to be active if her child is eligible for subsidized kindergarten, corresponding to previous estimates of labor supply elasticity of 0.3-0.75. This suggests that increased subsidized childcare availability and parental leave alone cannot explain the sharp increase in the rate of maternal participation seen around children's 3rd birthday, highlighting the importance of other factors such as separation preferences and flexible work forms.
|Date of creation:||Jul 2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (+36-1) 309-2652
Fax: (36-1) 319-3136
Web page: http://econ.core.hu
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Peter Haan & Katharina Wrohlich, 2009.
"Can Child Care Policy Encourage Employment and Fertility?: Evidence from a Structural Model,"
Discussion Papers of DIW Berlin
935, DIW Berlin, German Institute for Economic Research.
- Haan, Peter & Wrohlich, Katharina, 2011. "Can child care policy encourage employment and fertility?: Evidence from a structural model," Labour Economics, Elsevier, vol. 18(4), pages 498-512, August.
- Haan, Peter & Wrohlich, Katharina, 2009. "Can Child Care Policy Encourage Employment and Fertility? Evidence from a Structural Model," IZA Discussion Papers 4503, Institute for the Study of Labor (IZA).
- Peter Haan & Katharina Wrohlich, 2009. "Can child care policy encourage employment and fertility? Evidence from a structural model," MPIDR Working Papers WP-2009-025, Max Planck Institute for Demographic Research, Rostock, Germany.
- Pierre Lefebvre & Philip Merrigan, 2008. "Child-Care Policy and the Labor Supply of Mothers with Young Children: A Natural Experiment from Canada," Journal of Labor Economics, University of Chicago Press, vol. 26(3), pages 519-548, 07.
- David Bloom & David Canning & Günther Fink & Jocelyn Finlay, 2009.
"Fertility, female labor force participation, and the demographic dividend,"
Journal of Economic Growth,
Springer, vol. 14(2), pages 79-101, June.
- David E. Bloom & David Canning & Günther Fink & Jocelyn E. Finlay, 2007. "Fertility, Female Labor Force Participation, and the Demographic Dividend," NBER Working Papers 13583, National Bureau of Economic Research, Inc.
- David E. Bloom & David Canning & Guenther Fink & Jocelyn E. Finlay, 2007. "Fertility, Female Labor Force Participation, and the Demographic Dividend," PGDA Working Papers 2507, Program on the Global Demography of Aging.
- Patricia Apps & Ray Rees, 2010.
"Fertility, Female Labor Supply and Public Policy,"
- Maria Donovan Fitzpatrick, 2010.
"Preschoolers Enrolled and Mothers at Work? The Effects of Universal Prekindergarten,"
Journal of Labor Economics,
University of Chicago Press, vol. 28(1), pages 51-85, 01.
- Maria Fitzpatrick, 2008. "Preschoolers Enrolled and Mothers at Work? The Effects of Universal Pre-Kindergarten," Discussion Papers 08-001, Stanford Institute for Economic Policy Research.
- Maria Fitzpatrick, 2008. "Preschoolers Enrolled and Mothers at Work? The Effects of Universal Pre-Kindergarten," Working Papers 08-04, Center for Economic Studies, U.S. Census Bureau.
- Cristina Borra, 2010. "Childcare cost and Spanish mother’s labour force participation," Hacienda Pública Española, IEF, vol. 194(3), pages 9-40, October.
- Per Krusell & Lee E. Ohanian & JosÈ-Victor RÌos-Rull & Giovanni L. Violante, 2000.
"Capital-Skill Complementarity and Inequality: A Macroeconomic Analysis,"
Econometric Society, vol. 68(5), pages 1029-1054, September.
- Per Krusell & Lee E. Ohanian & Jose-Victor Rios-Rull & Giovanni L. Violante, 1997. "Capital-skill complementarity and inequality: a macroeconomic analysis," Staff Report 239, Federal Reserve Bank of Minneapolis.
- Jonah B. Gelbach, 2002. "Public Schooling for Young Children and Maternal Labor Supply," American Economic Review, American Economic Association, vol. 92(1), pages 307-322, March.
- Michael Lokshin, 2004.
"Household Childcare Choices and Women’s Work Behavior in Russia,"
Journal of Human Resources,
University of Wisconsin Press, vol. 39(4).
- Lokshin, Michael M., 1999. "Household childcare choices and women's work behavior in Russia," Policy Research Working Paper Series 2206, The World Bank.
- A. Chevalier & T. K. Viitanen, 2002. "The causality between female labour force participation and the availability of childcare," Applied Economics Letters, Taylor & Francis Journals, vol. 9(14), pages 915-918.
- Philippe Choné & David le Blanc & Isabelle Robert-Bobée, 2003. "Female Labor Supply and Child Care in France," CESifo Working Paper Series 1059, CESifo Group Munich.
- Lisa M. Powell, 2002. "Joint Labor Supply and Childcare Choice Decisions of Married Mothers," Journal of Human Resources, University of Wisconsin Press, vol. 37(1), pages 106-128.
When requesting a correction, please mention this item's handle: RePEc:has:bworkp:1313. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Adrienn Foldi)
If references are entirely missing, you can add them using this form.