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Wage inequality consequences of expanding public childcare

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  • Riedel, Lukas

Abstract

This paper assesses the impact of a large expansion of public childcare in Germany on wage inequality. Exploiting regional variation in childcare supply over the 1990s, I show that in regions with stronger increases in childcare, wage inequality among women increased less strongly compared to regions with smaller increases. This is primarily driven by the lower half of the wage distribution and qualitatively similar for full- and part-time workers. Larger expansions in childcare, however, do not contribute to a further closing of the gender wage gap.

Suggested Citation

  • Riedel, Lukas, 2024. "Wage inequality consequences of expanding public childcare," ZEW Discussion Papers 24-006, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:283614
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    File URL: https://www.econstor.eu/bitstream/10419/283614/1/1881228495.pdf
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    More about this item

    Keywords

    wage inequality; childcare; gender wage gap;
    All these keywords.

    JEL classification:

    • 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
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition

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