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Crowding-Out Effect of Publicly Provided Childcare: Why Maternal Employment Did Not Increase

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  • Yukiko Asai
  • Ryo Kambayashi
  • Shintaro Yamaguchi

Abstract

We estimate the causal effects of childcare availability on the maternal employment rate using prefecture panel data constructed from the Japanese quinquennial census 1990-2010. We find that childcare availability did not increase maternal employment due to the crowding-out effects. Namely, families substituted accredited childcare for informal care by grandparents. We also find evidence that more and more families do not live with grandparents who used to take care of grandchildren, as the availability of accredited childcare increases.

Suggested Citation

  • Yukiko Asai & Ryo Kambayashi & Shintaro Yamaguchi, 2015. "Crowding-Out Effect of Publicly Provided Childcare: Why Maternal Employment Did Not Increase," Department of Economics Working Papers 2015-08, McMaster University.
  • Handle: RePEc:mcm:deptwp:2015-08
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    References listed on IDEAS

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    1. Asai, Yukiko, 2015. "Parental leave reforms and the employment of new mothers: Quasi-experimental evidence from Japan," Labour Economics, Elsevier, vol. 36(C), pages 72-83.
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    8. Lee, Grace H.Y. & Lee, Sing Ping, 2014. "Childcare availability, fertility and female labor force participation in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 32(C), pages 71-85.
    9. Ylenia Brilli & Daniela Boca & Chiara Pronzato, 2016. "Does child care availability play a role in maternal employment and children’s development? Evidence from Italy," Review of Economics of the Household, Springer, vol. 14(1), pages 27-51, March.
    10. Asai, Yukiko & Kambayashi, Ryo & Yamaguchi, Shintaro, 2015. "Childcare availability, household structure, and maternal employment," Journal of the Japanese and International Economies, Elsevier, vol. 38(C), pages 172-192.
    11. 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.
    12. Pierre Lefebvre & Philip Merrigan, 2008. "Child-Care Policy and the Labor Supply of Mothers with Young Children: A Natural Experiment from Canada," Journal of Labor Economics, University of Chicago Press, vol. 26(3), pages 519-548, July.
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    Cited by:

    1. Donna Feir & Jasmin Thomas, 2017. "The Impact of Introducing Formal Childcare Services on Labour Force Participation in Inuit Nunangat," Department Discussion Papers 1702, Department of Economics, University of Victoria.
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    More about this item

    Keywords

    childcare; female labor supply; maternal employment; nuclear family; three-generation family;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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