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Public childcare - its impact on gender equality in entrepreneurship revisited

Author

Listed:
  • Kay, Rosemarie
  • Bijedić-Krumm, Teita
  • Brink, Siegrun
  • Nielen, Sebastian

Abstract

Objectives: The aim of this paper is to analyze the impact of public childcare provision on women's and men's start-up rates in Germany. Going beyond previous studies, we also analyze its impact on the extent of the gender gap in start-up rates. Literature review: The current state of research indicates that public childcare provision generally reduces women's startup propensity. However, recent studies suggest that the relationship between public childcare provision and women' start-up propensity is not that clear-cut. It rather depends on the age group childcare is provided for. As the evidence regarding public childcare's impact on men's start-up propensity is mixed, it is unclear whether public childcare contributes to closing the gender gap in entrepreneurial activities. Approach/Method: We analyze the impact of public childcare provision on the start-up rate of women and men, as well as its impact on the corresponding Gender Parity Score (GPS) at a regional level. To do this, we generated a database based on public statistics covering the years 2012 up to 2018 and estimated Fixed Effect models. Results/Findings: Our results show that the effect of public childcare provision on women's and men's start-up propensity depends on the type of the venture and the age group the childcare is provided for. Moreover, public childcare affects women's and men's start-up propensity differently. All in all, public childcare provision decreases the GPS, indicating a widening of the gender gap. Implications and Value: As important as public childcare provision for women's general labor market participation is, it does neither improve their start-up propensity (quite the contrary) nor contribute to closing the entrepreneurial gender gap generally. Thus, public childcare provision seems not to be a policy for reducing the gender gap in entrepreneurship, apart from establishing economically substantial businesses.

Suggested Citation

  • Kay, Rosemarie & Bijedić-Krumm, Teita & Brink, Siegrun & Nielen, Sebastian, 2025. "Public childcare - its impact on gender equality in entrepreneurship revisited," Working Papers 02/25, Institut für Mittelstandsforschung (IfM) Bonn.
    • Handle: RePEc:zbw:ifmwps:333923
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    References listed on IDEAS

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    1. Kay, Rosemarie, 2023. "Zur Unterrepräsentanz von Frauen im Unternehmertum," Daten und Fakten 34, Institut für Mittelstandsforschung (IfM) Bonn.
    2. Stefanie König & Beate Cesinger, 2015. "Gendered work–family conflict in Germany: do self-employment and flexibility matter?," Post-Print hal-02011121, HAL.
    3. Shireen Kanji & Natalia Vershinina, 2024. "Gendered transitions to self-employment and business ownership: a linked-lives perspective," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 36(7-8), pages 922-939, August.
    4. Kay, Rosemarie & Kranzusch, Peter & Nielen, Sebastian & Suprinovič, Olga, 2022. "Das Gründungsgeschehen in den Kreisen und kreisfreien Städten: Was zeichnet erfolgreiche Gründungsökosysteme aus?," Daten und Fakten 31, Institut für Mittelstandsforschung (IfM) Bonn.
    5. Parker, Simon C., 2008. "Entrepreneurship among married couples in the United States: A simultaneous probit approach," Labour Economics, Elsevier, vol. 15(3), pages 459-481, June.
    6. S. Kanji & N. Vershinina, 2024. "Gendered transitions to self-employment and business ownership: A linked-lives perspective," Post-Print hal-04619598, HAL.
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