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

58 Pages Posted: 20 Dec 2022 Last revised: 5 May 2023

See all articles by Henning Hermes

Henning Hermes

Heinrich Heine University Dusseldorf - Duesseldorf Institute for Competition Economics (DICE)

Marina Krauß

University of Augsburg

Philipp Lergetporer

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute

Frauke Peter

German Institute for Economic Research (DIW Berlin)

Simon Wiederhold

CESifo (Center for Economic Studies and Ifo Institute); Chair of Macroeconomics

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.

Keywords: gender equality, maternal employment, child care, randomized controlled trial

JEL Classification: D90, J13, J18, J22, C93

Suggested Citation

Hermes, Henning and Krauß, Marina and Lergetporer, Philipp and Peter, Frauke and Wiederhold, Simon and Wiederhold, Simon, Early Child Care and Labor Supply of Lower-Ses Mothers: A Randomized Controlled Trial. IZA Discussion Paper No. 15814, Available at SSRN: https://ssrn.com/abstract=4307468 or http://dx.doi.org/10.2139/ssrn.4307468

Henning Hermes (Contact Author)

Heinrich Heine University Dusseldorf - Duesseldorf Institute for Competition Economics (DICE) ( email )

Universitaetsstr. 1
Duesseldorf, NRW 40225
Germany

Marina Krauß

University of Augsburg

Universitätsstr. 2
Augsburg, 86159
Germany

Philipp Lergetporer

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute ( email )

Dresden Branch
Einsteinstraße 3
Dresden, 01069
Germany

Frauke Peter

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

Simon Wiederhold

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Chair of Macroeconomics

Auf der Schanz 49
Ingolstadt, 85049
Germany

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