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Early child care, maternal labor supply, and gender equality: A randomized controlled trial

Author

Listed:
  • Hermes, Henning
  • Krauß, Marina
  • Lergetporer, Philipp
  • Peter, Frauke
  • Wiederhold, Simon
Abstract
We provide experimental evidence that enabling access to universal early child care increases maternal labor supply and promotes gender equality among families with lower socioeconomic status (SES). Our intervention offers information and customized help with child care applications, leading to a boost in child care enrollment among lower-SES families. 18 months after the intervention, we find substantial increases in maternal full-time employment (+160%), maternal earnings (+22%), and household income (+10%). Intriguingly, the positive employment effects are not only driven by extended hours at child care centers, but also by an increase in care hours by fathers. Gender equality also benefits more broadly from better access to child care: The treatment improves a gender equality index that combines information on intra-household division of working hours, care hours, and earnings by 40% of a standard deviation, with significant increases in each dimension. For higher-SES families, we consistently observe negligible, insignificant treatment effects.

Suggested Citation

  • Hermes, Henning & Krauß, Marina & Lergetporer, Philipp & Peter, Frauke & Wiederhold, Simon, 2024. "Early child care, maternal labor supply, and gender equality: A randomized controlled trial," IWH Discussion Papers 14/2024, Halle Institute for Economic Research (IWH).
    • Handle: RePEc:zbw:iwhdps:289799
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    Cited by:

    1. Katrin Huber & Geske Rolvering, 2023. "Public child care and mothers’ career trajectories," Working Papers 228, Bavarian Graduate Program in Economics (BGPE).
    2. Henning Hermes & Philipp Lergetporer & Fabian Mierisch & Frauke Peter & Simon Wiederhold, 2023. "Discrimination on the Child Care Market: A Nationwide Field Experiment," Working Papers 225, Bavarian Graduate Program in Economics (BGPE).
    3. Marina Krauß & Niklas Rott, 2024. "Early Childcare Expansion and Maternal Health," SOEPpapers on Multidisciplinary Panel Data Research 1208, DIW Berlin, The German Socio-Economic Panel (SOEP).
    4. Hermes, Henning & Lergetporer, Philipp & Peter, Frauke & Wiederhold, Simon, 2021. "Behavioral Barriers and the Socioeconomic Gap in Child Care Enrollment," Discussion Paper Series in Economics 16/2021, Norwegian School of Economics, Department of Economics.
    5. Henning Hermes & Philipp Lergetporer & Frauke Peter & Simon Wiederhold, 2021. "Application Barriers and the Socioeconomic Gap in Child Care Enrollment," CESifo Working Paper Series 9282, CESifo.
    6. Huber, Katrin & Rolvering, Geske, 2023. "Public Child Care and Mothers' Career Trajectories," IZA Discussion Papers 16433, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    child care; gender equality; maternal employment; randomized controlled trial;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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