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The Effect of Childcare Access on Women's Careers and Firm Performance

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Listed:
  • Elena Simintzi
  • Sheng-Jun Xu
  • Ting Xu

Abstract

We study the effects of government-subsidized childcare on women's careers and firm outcomes using linked tax filing data. Exploiting cohort-level variation in childcare access based on a Quebec universal childcare reform, we show that earlier access to childcare not only increases new mothers' employment and earnings, but also prompts them to reallocate careers to firms previously unattractive to new mothers. These firms subsequently benefited from the reform, drawing more young, productive female workers and experiencing better performance. Our results suggest that childcare frictions hamper women's career progression and the allocation of human capital in the labor market.

Suggested Citation

  • Elena Simintzi & Sheng-Jun Xu & Ting Xu, 2025. "The Effect of Childcare Access on Women's Careers and Firm Performance," NBER Working Papers 33835, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:33835
    Note: CF CH LS PE PR
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    More about this item

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics

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