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Does more free childcare help parents work more?

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  • Mike Brewer

    (Institute for Fiscal Studies and Resolution Foundation)

  • Sarah Cattan

    (Institute for Fiscal Studies and Institute for Fiscal Studies)

  • Claire Crawford

    (Institute for Fiscal Studies and University of Birmingham)

  • Birgitta Rabe

    (Institute for Fiscal Studies)

Abstract

Many governments are considering expanding childcare subsidies, but little is known about the impact of such policies on parent’s labour supply. Exploiting free childcare eligibility rules based on date of birth in a difference-in-differences framework, we compare the effects of offering free part-time childcare and of expanding this offer to the whole school day. Free part-time childcare only affects the labour force participation of mothers whose youngest child is eligible. Expanding from part-time to full-time free childcare leads to significant increases in labour force participation and employment of these mothers, which emerge immediately and grow over the months following entitlement.

Suggested Citation

  • Mike Brewer & Sarah Cattan & Claire Crawford & Birgitta Rabe, 2016. "Does more free childcare help parents work more?," IFS Working Papers W16/22, Institute for Fiscal Studies.
    • Handle: RePEc:ifs:ifsewp:16/22
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    2. Marc Jourdain Muizon, 2020. "Subsidies for parental leave and formal childcare: be careful what you wish for," Review of Economics of the Household, Springer, vol. 18(3), pages 735-772, September.
    3. Christoph Zangger & Janine Widmer & Sandra Gilgen, 2021. "Work, Childcare, or Both? Experimental Evidence on the Efficacy of Childcare Subsidies in Raising Parental Labor Supply," Journal of Family and Economic Issues, Springer, vol. 42(3), pages 449-472, September.
    4. Roantree, Barra & Barrett, Michelle & Redmond, Paul, 2022. "Poverty, income inequality and living standards in Ireland: 2nd annual report," Research Series, Economic and Social Research Institute (ESRI), number JR1, June.
    5. Russell, Helen & McGinnity, Frances & Fahey, Éamonn & Kenny, Oona, 2018. "Maternal employment and the cost of childcare in Ireland," Research Series, Economic and Social Research Institute (ESRI), number RS73, June.
    6. Michelle Barrett & Karina Doorley & Paul Redmond & Barra Roantree, 2022. "How Has the Gender Earnings Gap in Ireland Changed in Thirty Years?," Social Sciences, MDPI, vol. 11(8), pages 1-21, August.
    7. Monica Costa Dias & Robert Joyce & Francesca Parodi, 2019. "The gender pay gap in the UK: children and experience in work," Carlo Alberto Notebooks 594, Collegio Carlo Alberto.

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    More about this item

    Keywords

    Labour supply; childcare; school entry; difference-in-difference;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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