Working for Yourself or for Your Kids ? Childcare Expansion Policy in Uzbekistan

In developed countries, public childcare programs have increased maternal employment by easing time constraints. However, their impact in lower-middle-income settings with multigenerational households is less understood. In Uzbekistan, for instance, many households include multiple adult women, such as grandmothers and aunts, who traditionally do not work and can provide informal childcare, potentially lowering the demand for public services. This paper examines the effects of a recent preschool expansion policy (2018–22) on women’s labor market participation in this context. To assess the policy’s causal impact, the paper utilizes variations in childcare coverage across districts over time. The results show that the childcare expansion policy led to a 12 percent average increase in female labor supply, with the strongest effects observed for families that value education but face financial constraints. In contrast, the availability of informal caregivers does not decrease the policy’s effect. These findings challenge the idea that time constraints are the primary mechanism linking childcare expansion to women’s employment. Instead, in this context, economic factors—especially the need to afford childcare costs—emerge as the main drivers.