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Early Child Care and Labor Supply of Lower-SES Mothers: A Randomized Controlled Trial

Author

Listed:
  • Henning Hermes

    (HHU Düsseldorf, DICE)

  • Marina Krauß

    (University of Augsburg)

  • Philipp Lergetporer

    (Technical University of Munich, TUM School of Management, ifo Institute Munich)

  • Frauke Peter

    (German Centre for Higher Education Research and Science Studies (DZHW), DIW Berlin)

  • Simon Wiederhold

    (KU Eichstätt-Ingolstadt, Ingolstadt School of Management, ifo Institute Munich)

Abstract
We present experimental evidence that enabling access to universal early child care for families with lower socioeconomic status (SES) increases maternal labor supply. Our intervention provides families with customized help for child care applications, resulting in a large increase in enrollment among lower-SES families. The treatment increases lower-SES mothers’ full-time employment rates by 9 percentage points (+160%), household income by 10%, and mothers’ earnings by 22%. The effect on full-time employment is largely driven by increased care hours provided by child care centers and fathers. Overall, the treatment substantially improves intra-household gender equality in terms of child care duties and earnings.

Suggested Citation

  • Henning Hermes & Marina Krauß & Philipp Lergetporer & Frauke Peter & Simon Wiederhold, 2022. "Early Child Care and Labor Supply of Lower-SES Mothers: A Randomized Controlled Trial," Munich Papers in Political Economy 25, Munich School of Politics and Public Policy and the School of Management at the Technical University of Munich.
    • Handle: RePEc:aiw:wpaper:25
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    Cited by:

    1. 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.
    2. Hermes, Henning & Mierisch, Fabian & Peter, Frauke & Wiederhold, Simon & Lergetporer, Philipp, 2023. "Discrimination on the Child Care Market: A Nationwide Field Experiment," IZA Discussion Papers 16082, Institute of Labor Economics (IZA).
    3. Huber, Katrin & Rolvering, Geske, 2023. "Public Child Care and Mothers' Career Trajectories," IZA Discussion Papers 16433, Institute of Labor Economics (IZA).
    4. Katrin Huber & Geske Rolvering, 2023. "Public child care and mothers’ career trajectories," Working Papers 228, Bavarian Graduate Program in Economics (BGPE).
    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.

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    More about this item

    Keywords

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

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • 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
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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