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The Effect of Mandated Child Care on Female Wages in Chile

Author

Listed:
  • María Fernanda Prada
  • Graciana Rucci
  • Sergio Urzúa

Abstract

This paper studies the effect of mandated employer-provided child care on the wages of women hired in large firms in Chile. We use a unique employer-employee database from the country's unemployment insurance (UI) system containing monthly information for all individuals that started a new contract between January 2005 and March 2013. We estimate the impact of the program using regression discontinuity design (RDD) exploiting the fact that child care provision is mandatory for all firms with 20 or more female workers. The results indicate that the monthly starting wages of the infra-marginal woman hired in a firm with 20 or more female workers is between 9 percent and 20 percent less than those of female workers hired by the same firm when no requirement of providing childcare was imposed.

Suggested Citation

  • María Fernanda Prada & Graciana Rucci & Sergio Urzúa, 2015. "The Effect of Mandated Child Care on Female Wages in Chile," IDB Publications (Working Papers) 6880, Inter-American Development Bank.
  • Handle: RePEc:idb:brikps:6880
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    References listed on IDEAS

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    1. James J. Heckman & Carmen Pagés, 2004. "Law and Employment: Lessons from Latin America and the Caribbean," NBER Books, National Bureau of Economic Research, Inc, number heck04-1, January.
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    3. Villena, Mauricio G. & Sanchez, Rafael & Rojas, Eugenio, 2011. "Unintended Consequences of Childcare Regulation in Chile: Evidence from a Regression Discontinuity Design," MPRA Paper 62096, University Library of Munich, Germany, revised 10 Feb 2015.
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    5. Gruber, Jonathan, 1997. "The Incidence of Payroll Taxation: Evidence from Chile," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 72-101, July.
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    Cited by:

    1. Verónica Alaimo & Mariano Bosch & David S. Kaplan & Carmen Pagés & Laura Ripani, 2015. "Jobs for Growth," IDB Publications (Books), Inter-American Development Bank, number 90977, February.

    More about this item

    Keywords

    Wages; Workforce & Employment; Gender Equality; Child development; Policies for gender; Regression discontinuity; Female wages; Mandated benefits; Labor Policy; Employability;

    JEL classification:

    • C - Mathematical and Quantitative Methods
    • J - Labor and Demographic Economics

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