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Minimum Wage and Parental Childcare Time in the USA, 2019-2023

Author

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  • Guillen Sanchez, Jorge
  • Molina, Jose Alberto
  • Gimenez-Nadal, Jose Ignacio

Abstract

Recent economic literature suggests that increases in the minimum wage can lead to parents spending more time in childcare through easing financial constraints such as the income effect. However, most evidence from past research does not analyse the disruptions of the COVID 19 pandemic. This research examines the impact of state-level minimum wage increases on parental childcare time in the United States during the mentioned period of 2019 to 2023. Through the use of microdata from the American Time Use Survey (ATUS), we analyse a sample of 4043 working age parents and find that, contrary to findings from the 2003 to 2019 period, there is no statistical-ly significant effect on childcare time across aggregate or subgroup specifications, including mothers, fathers and low education parents among others. This null result diverges from pre-2019 literature. We attribute this lack of significance to the unique structural rigidities of the post-pandemic labor market (2019–2023) and the erosion of real wages due to high inflation, which likely neutralized the behavioral incentives typically associated with wage floors.

Suggested Citation

  • Guillen Sanchez, Jorge & Molina, Jose Alberto & Gimenez-Nadal, Jose Ignacio, 2026. "Minimum Wage and Parental Childcare Time in the USA, 2019-2023," MPRA Paper 127777, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:127777
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    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

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