IDEAS home Printed from https://ideas.repec.org/p/inq/inqwps/ecineq2021-584.html
   My bibliography  Save this paper

Childcare and Maternal Employment: Evidence from Vietnam

Author

Listed:
  • Hai-Anh Dang

    (World Bank)

  • Masako Hiraga

    (World Bank)

  • Cuong Viet Nguyen

    (Vietnam National University)

Abstract

Little literature currently exists on the effects of childcare use on maternal labor market outcomes in a developing country context, and the few recent studies offer mixed results. We attempt to fill these gaps by analyzing several latest rounds of the Vietnam Household Living Standards Survey spanning the early to mid-2010s. Addressing endogeneity issues with a regression discontinuity estimator based on children’s birth months, we find sizable and positive effects of childcare on women’s own labor market outcomes and their household income and poverty status. The effects of childcare differ by women’s characteristics and are stronger for more educated women. These effects are also somewhat larger for younger children and areas with higher income levels. Furthermore, we also find that some positive effects last after two years.

Suggested Citation

  • Hai-Anh Dang & Masako Hiraga & Cuong Viet Nguyen, 2021. "Childcare and Maternal Employment: Evidence from Vietnam," Working Papers 584, ECINEQ, Society for the Study of Economic Inequality.
  • Handle: RePEc:inq:inqwps:ecineq2021-584
    as

    Download full text from publisher

    File URL: http://www.ecineq.org/milano/WP/ECINEQ2021-584.pdf
    File Function: First version, 2021
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Esther Duflo, 2012. "Women Empowerment and Economic Development," Journal of Economic Literature, American Economic Association, vol. 50(4), pages 1051-1079, December.
    2. Manuel Santos Silva & Stephan Klasen, 2021. "Gender inequality as a barrier to economic growth: a review of the theoretical literature," Review of Economics of the Household, Springer, vol. 19(3), pages 581-614, September.
    3. David S. Lee & Thomas Lemieux, 2010. "Regression Discontinuity Designs in Economics," Journal of Economic Literature, American Economic Association, vol. 48(2), pages 281-355, June.
    4. 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.
    5. Samuel Berlinski & Sebastian Galiani & Patrick J. McEwan, 2011. "Preschool and Maternal Labor Market Outcomes: Evidence from a Regression Discontinuity Design," Economic Development and Cultural Change, University of Chicago Press, vol. 59(2), pages 313-344.
    6. Quy-Toan Do & Tung D. Phung, 2010. "The Importance of Being Wanted," American Economic Journal: Applied Economics, American Economic Association, vol. 2(4), pages 236-253, October.
    7. Oriana Bandiera & Ashwini Natraj, 2013. "Does Gender Inequality Hinder Development and Economic Growth? Evidence and Policy Implications," The World Bank Research Observer, World Bank Group, vol. 28(1), pages 2-21, February.
    8. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    9. Margaret Maurer-Fazio & Rachel Connelly & Lan Chen & Lixin Tang, 2011. "Childcare, Eldercare, and Labor Force Participation of Married Women in Urban China, 1982–2000," Journal of Human Resources, University of Wisconsin Press, vol. 46(2), pages 261-294.
    10. Angrist, Joshua D, 2001. "Estimations of Limited Dependent Variable Models with Dummy Endogenous Regressors: Simple Strategies for Empirical Practice," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(1), pages 2-16, January.
    11. World Bank, 2019. "World Development Report 2019 [Rapport sur le développement dans le monde 2019]," World Bank Publications - Books, The World Bank Group, number 30435, December.
    12. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    13. Duflo, Esther & Glennerster, Rachel & Kremer, Michael, 2008. "Using Randomization in Development Economics Research: A Toolkit," Handbook of Development Economics, in: T. Paul Schultz & John A. Strauss (ed.), Handbook of Development Economics, edition 1, volume 4, chapter 61, pages 3895-3962, Elsevier.
    14. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    15. Edward C. Norton & Hua Wang & Chunrong Ai, 2004. "Computing interaction effects and standard errors in logit and probit models," Stata Journal, StataCorp LP, vol. 4(2), pages 154-167, June.
    16. Titan Alon & Sena Coskun & Matthias Doepke & David Koll & Michèle Tertilt, 2022. "From Mancession to Shecession: Women’s Employment in Regular and Pandemic Recessions," NBER Macroeconomics Annual, University of Chicago Press, vol. 36(1), pages 83-151.
    17. David Card & Jochen Kluve & Andrea Weber, 2018. "What Works? A Meta Analysis of Recent Active Labor Market Program Evaluations," Journal of the European Economic Association, European Economic Association, vol. 16(3), pages 894-931.
    18. Claude Diebolt & Faustine Perrin, 2013. "From Stagnation to Sustained Growth: The Role of Female Empowerment," American Economic Review, American Economic Association, vol. 103(3), pages 545-549, May.
    19. 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, January.
    20. Peter Lanjouw & Marleen Marra & Cuong Nguyen, 2017. "Vietnam’s Evolving Poverty Index Map: Patterns and Implications for Policy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 133(1), pages 93-118, August.
    21. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097, Elsevier.
    22. Bettendorf, Leon J.H. & Jongen, Egbert L.W. & Muller, Paul, 2015. "Childcare subsidies and labour supply — Evidence from a large Dutch reform," Labour Economics, Elsevier, vol. 36(C), pages 112-123.
    23. Hai-Anh H. Dang & Trung X. Hoang & Ha Nguyen, 2021. "The Long-Run and Gender-Equalizing Impacts of School Access: Evidence from the First Indochina War," Economic Development and Cultural Change, University of Chicago Press, vol. 70(1), pages 453-484.
    24. Matias D. Cattaneo & Nicolas Idrobo & Rocio Titiunik, 2019. "A Practical Introduction to Regression Discontinuity Designs: Foundations," Papers 1911.09511, arXiv.org.
    25. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
    26. Andrew Gelman & Guido Imbens, 2019. "Why High-Order Polynomials Should Not Be Used in Regression Discontinuity Designs," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 37(3), pages 447-456, July.
    27. Hai-Anh H. Dang & Paul W. Glewwe, 2018. "Well Begun, but Aiming Higher: A Review of Vietnam’s Education Trends in the past 20 Years and Emerging Challenges," Journal of Development Studies, Taylor & Francis Journals, vol. 54(7), pages 1171-1195, July.
    28. Lundin, Daniela & Mörk, Eva & Öckert, Björn, 2008. "How far can reduced childcare prices push female labour supply?," Labour Economics, Elsevier, vol. 15(4), pages 647-659, August.
    29. Dang, Hai-Anh H. & Viet Nguyen, Cuong, 2021. "Gender inequality during the COVID-19 pandemic: Income, expenditure, savings, and job loss," World Development, Elsevier, vol. 140(C).
    30. McCrary, Justin, 2008. "Manipulation of the running variable in the regression discontinuity design: A density test," Journal of Econometrics, Elsevier, vol. 142(2), pages 698-714, February.
    31. Duc Hong Vo & Loan Thi-Hong Van & Dai Binh Tran & Tan Ngoc Vu & Chi Minh Ho, 2021. "The Determinants of Gender Income Inequality in Vietnam: A Longitudinal Data Analysis," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 57(1), pages 198-222, January.
    32. Kelly Bedard & Elizabeth Dhuey, 2006. "The Persistence of Early Childhood Maturity: International Evidence of Long-Run Age Effects," The Quarterly Journal of Economics, Oxford University Press, vol. 121(4), pages 1437-1472.
    33. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
    34. Havnes, Tarjei & Mogstad, Magne, 2011. "Money for nothing? Universal child care and maternal employment," Journal of Public Economics, Elsevier, vol. 95(11), pages 1455-1465.
    35. Liu, Amy Y.C., 2004. "Gender wage gap in Vietnam: 1993 to 1998," Journal of Comparative Economics, Elsevier, vol. 32(3), pages 586-596, September.
    36. Hahn, Jinyong & Todd, Petra & Van der Klaauw, Wilbert, 2001. "Identification and Estimation of Treatment Effects with a Regression-Discontinuity Design," Econometrica, Econometric Society, vol. 69(1), pages 201-209, January.
    37. Cuong Nguyen & Anh Tran, 2017. "The Effect of Having Children on Women’s Marital Status: Evidence From Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 53(12), pages 2102-2117, December.
    38. Elisabetta Aurino & Whitney Schott & Jere R. Behrman & Mary Penny, 2019. "Nutritional Status from 1 to 15 Years and Adolescent Learning for Boys and Girls in Ethiopia, India, Peru, and Vietnam," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 38(6), pages 899-931, December.
    39. Jeffrey M. Wooldridge, 2015. "Control Function Methods in Applied Econometrics," Journal of Human Resources, University of Wisconsin Press, vol. 50(2), pages 420-445.
    40. Angrist, Joshua D, 2001. "Estimations of Limited Dependent Variable Models with Dummy Endogenous Regressors: Simple Strategies for Empirical Practice: Reply," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(1), pages 27-28, January.
    41. Feeny, Simon & Mishra, Ankita & Trinh, Trong-Anh & Ye, Longfeng & Zhu, Anna, 2021. "Early-Life exposure to rainfall shocks and gender gaps in employment: Findings from Vietnam," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 533-554.
    42. Yusuf Emre Akgunduz & Janneke Plantenga, 2018. "Child Care Prices And Maternal Employment: A Meta†Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 32(1), pages 118-133, February.
    43. World Bank, 2012. "World Development Report 2012 [Rapport sur le développement dans le monde 2012]," World Bank Publications - Books, The World Bank Group, number 4391, December.
    44. Elizabeth U. Cascio, 2009. "Maternal Labor Supply and the Introduction of Kindergartens into American Public Schools," Journal of Human Resources, University of Wisconsin Press, vol. 44(1).
    45. Christophe Z. Guilmoto, 2012. "Son Preference, Sex Selection, and Kinship in Vietnam," Population and Development Review, The Population Council, Inc., vol. 38(1), pages 31-54, March.
    46. Ho, Manh-Toan & La, Viet-Phuong & Nguyen, Minh-Hoang & Pham, Thanh-Hang & Vuong, Thu-Trang & Vuong, Ha-My & Pham, Hung-Hiep & Hoang, Anh-Duc & Vuong, Quan-Hoang, 2020. "An analytical view on STEM education and outcomes: Examples of the social gap and gender disparity in Vietnam," Children and Youth Services Review, Elsevier, vol. 119(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cuong Nguyen & Anh Tran, 2020. "Are children an incentive or a disincentive for migration? Evidence from Vietnam," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 28(3), pages 467-485, July.
    2. Nguyen, Cuong, 2019. "Simulation of the Costs and Benefits of Delayed Retirement: Evidence from Vietnam," MPRA Paper 106180, University Library of Munich, Germany.
    3. Cuong Viet Nguyen & Finn Tarp, 2023. "Cash Transfers and Labor Supply: New Evidence on Impacts and Mechanisms," DERG working paper series 23-18, University of Copenhagen. Department of Economics. Development Economics Research Group (DERG).
    4. Anh Thu Quang Pham & Pundarik Mukhopadhaya & Ha Vu, 2021. "Estimating poverty and vulnerability to monetary and non-monetary poverty: the case of Vietnam," Empirical Economics, Springer, vol. 61(6), pages 3125-3177, December.
    5. Kozhaya, Mireille, 2022. "The double burden: The impact of school closures on labor force participation of mothers," Ruhr Economic Papers 956, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    6. Semih Tumen & Belgi Turan, 2023. "The effect of fertility on female labor supply in a labor market with extensive informality," Empirical Economics, Springer, vol. 65(4), pages 1855-1894, October.
    7. Mieke Meurs & Maigul Nugmanova & Aizhan Salimzhanova & Stevie Marvin, 2021. "Gender Regime and Women’s Employment in Kazakhstan," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 63(4), pages 603-622, December.
    8. Cuong Viet Nguyen, 2022. "The effect of preschool attendance on Children's health: Evidence from a lower middle‐income country," Health Economics, John Wiley & Sons, Ltd., vol. 31(8), pages 1558-1589, August.

    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. Cuong Viet Nguyen & Finn Tarp, 2023. "Cash Transfers and Labor Supply: New Evidence on Impacts and Mechanisms," DERG working paper series 23-18, University of Copenhagen. Department of Economics. Development Economics Research Group (DERG).
    2. Carta, Francesca & Rizzica, Lucia, 2018. "Early kindergarten, maternal labor supply and children's outcomes: Evidence from Italy," Journal of Public Economics, Elsevier, vol. 158(C), pages 79-102.
    3. Müller, Kai-Uwe & Wrohlich, Katharina, 2020. "Does subsidized care for toddlers increase maternal labor supply? Evidence from a large-scale expansion of early childcare," Labour Economics, Elsevier, vol. 62(C).
    4. Francesca Carta & Lucia Rizzica, 2016. "Female employment and pre-kindergarten: On the unintended effects of an Italian reformAbstract: We theoretically show that when mothers need to buy childcare services not only if they work but also if," Working Papers 091, "Carlo F. Dondena" Centre for Research on Social Dynamics (DONDENA), Università Commerciale Luigi Bocconi.
    5. Cuong Nguyen & Anh Tran, 2020. "Are children an incentive or a disincentive for migration? Evidence from Vietnam," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 28(3), pages 467-485, July.
    6. Emilia Soldani, 2021. "Public kindergarten, maternal labor supply, and earnings in the longer run: Too little too late?," LABOUR, CEIS, vol. 35(2), pages 214-263, June.
    7. Henning Finseraas & Inés Hardoy & Pål Schøne, 2017. "School enrolment and mothers’ labor supply: evidence from a regression discontinuity approach," Review of Economics of the Household, Springer, vol. 15(2), pages 621-638, June.
    8. Cuong Viet Nguyen, 2022. "The effect of preschool attendance on Children's health: Evidence from a lower middle‐income country," Health Economics, John Wiley & Sons, Ltd., vol. 31(8), pages 1558-1589, August.
    9. BOUSSELIN Audrey, 2019. "Expanding access to universal childcare: Effects on childcare arrangements and maternal employment," LISER Working Paper Series 2019-11, Luxembourg Institute of Socio-Economic Research (LISER).
    10. Bauernschuster, Stefan & Schlotter, Martin, 2015. "Public child care and mothers' labor supply—Evidence from two quasi-experiments," Journal of Public Economics, Elsevier, vol. 123(C), pages 1-16.
    11. Mauricio Villamizar‐Villegas & Freddy A. Pinzon‐Puerto & Maria Alejandra Ruiz‐Sanchez, 2022. "A comprehensive history of regression discontinuity designs: An empirical survey of the last 60 years," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 1130-1178, September.
    12. Kettlewell, Nathan & Siminski, Peter, 2020. "Optimal Model Selection in RDD and Related Settings Using Placebo Zones," IZA Discussion Papers 13639, Institute of Labor Economics (IZA).
    13. Mazzutti, Caio Cícero Toledo Piza da Costa, 2016. "Three essays on the causal impacts of child labour laws in Brazil," Economics PhD Theses 0616, Department of Economics, University of Sussex Business School.
    14. Gabriel Ehrlich & Jeffrey Perry, 2015. "Do Large-Scale Refinancing Programs Reduce Mortgage Defaults? Evidence From a Regression Discontinuity Design: Working Paper 2015-06," Working Papers 50871, Congressional Budget Office.
    15. Eckhoff Andresen, Martin & Havnes, Tarjei, 2019. "Child care, parental labor supply and tax revenue," Labour Economics, Elsevier, vol. 61(C).
    16. Francesca Carta & Lucia Rizzica, 2015. "Female employment and pre-kindergarten: on the uninteded effects of an Italian reform," Temi di discussione (Economic working papers) 1030, Bank of Italy, Economic Research and International Relations Area.
    17. Brewer, Mike & Cattan, Sarah & Crawford, Claire & Rabe, Birgitta, 2016. "Free Childcare and Parents' Labour Supply: Is More Better?," IZA Discussion Papers 10415, Institute of Labor Economics (IZA).
    18. Brewer, Mike & Cattan, Sarah & Crawford, Claire & Rabe, Birgitta, 2022. "Does more free childcare help parents work more?," Labour Economics, Elsevier, vol. 74(C).
    19. Hoang, Tuyen Thanh & Nguyen, Cuong Viet & Van Tran, Hoa Thi, 2019. "Are female CEOs more risk averse than male counterparts? Evidence from Vietnam," Economic Analysis and Policy, Elsevier, vol. 63(C), pages 57-74.
    20. Müller, Kai-Uwe & Wrohlich, Katharina & Sengül, Denise, 2016. "Does subsidized care for toddlers increase maternal labor supply? Evidence from a large-scale expansion of early childcare," VfS Annual Conference 2016 (Augsburg): Demographic Change 145654, Verein für Socialpolitik / German Economic Association.

    More about this item

    Keywords

    gender equality; childcare; preschool; women’s empowerment; RDD; Vietnam;
    All these keywords.

    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:inq:inqwps:ecineq2021-584. 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: Maria Ana Lugo (email available below). General contact details of provider: https://edirc.repec.org/data/ecineea.html .

    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.