Caring Dads? Universal Childcare, Paternity Leave, and Fathers’ Labor Supply

We study how expansions of publicly subsidized childcare affect the intra-household allocation of labor supply in early childhood, with a particular focus on fathers. Exploiting variation in the roll-out of childcare places for children under three across German counties, we show that increased availability accelerates childcare entry and maternal return to work. Fathers also adjust their labor supply: they take more parental leave and subsequently reduce full-time work, yet without significantly increasing weekday caregiving. These findings imply that childcare policies can reshape labor supply within households, leading to smaller aggregate labor supply effects than suggested by maternal responses alone.