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Universal Daycare and Mothers Working Lifetime

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  • Sarah Sander

    (Department of Economics, University of Copenhagen)

Abstract

This paper examines the effects of universal daycare on mothers’ labor force participation,full-time employment, and earnings over their working lifetime. I exploit differential access to daycare caused by a roll-out of daycare centers across Denmark in combination with rich administrative data. Daycare availability has persistent effects on labor force participation and increases long-run earnings. Reduced fertility and parental separation are potential mediators behind the participation effects. For higher-educated mothers, participation effects diminish over time, whereas earnings effects prevail in the long run. These results suggest that labor market attachment during child-rearing years has important long-run economic consequences.

Suggested Citation

  • Sarah Sander, 2024. "Universal Daycare and Mothers Working Lifetime," CEBI working paper series 24-13, University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI).
    • Handle: RePEc:kud:kucebi:2413
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    File URL: https://www.econ.ku.dk/cebi/publikationer/working-papers/CEBI_WP_13-24.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    child care; female labor supply;

    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

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