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Daycare Accessibility and Maternal Labor Market Outcomes: Do Quality Ratings Matter?

Author

Listed:
  • Cobb-Clark, Deborah A.

    (University of Sydney)

  • Dang, Tung

  • Fisher, Hayley

    (University of Sydney)

Abstract

Using administrative data on Australian daycare centers and a triple-difference design, we examine the impact of daycare availability and quality ratings on childcare utilization and mothers’ labor market outcomes. We document a substantial positive impact of daycare availability and higher quality ratings on formal care usage and mothers’ employment and earnings. The effect of quality ratings is particularly pronounced among high-income, more-educated, and first-time mothers, whose perceptions of local daycare quality are most responsive to changes in ratings. Our findings underscore the important roles of childcare quality, in addition to accessibility, in shaping families’ childcare choices and mothers’ employment decisions.

Suggested Citation

  • Cobb-Clark, Deborah A. & Dang, Tung & Fisher, Hayley, 2025. "Daycare Accessibility and Maternal Labor Market Outcomes: Do Quality Ratings Matter?," IZA Discussion Papers 18300, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp18300
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    Keywords

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    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • 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

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