Henning Hermes, Marina Krauss;, Philipp Lergetporer, Frauke Peter, Simon Wiederhold 

Early Child Care, Maternal Labor Supply, and Gender Equality:
A Randomized Controlled Trial*


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.
 

JEL:  J13, J18, J22, C93

Paper:

Paper available as pdf-file. Beitrag Nr. 345, Volkswirtschaftliche Diskussionsreihe, Institut für Volkswirtschaftslehre der Universität Augsburg

Contact:

Henning Hermes, University of Düsseldorf, Institute for Competition Economics (DICE), D-40225 Düsseldorf, Germany, phone +49-211-81-15052
email: hermes@dice.hhu.de
Marina Krauß, University of Augsburg, Department of Economics, D-86135 Augsburg, Germany, phone +49-821-598-4208
email: marina.krauss@wiwi.uni-augsburg.de
Philipp Lergetporer, Technical University of Munich, School of Management, D-74076 Heilbronn, Germany
email: philipp.lergetporer@tum.de
Frauke Peter, Deutsches Zentrum für Hochschul- und Wissenschaftsforschung (DZHW), D-30159 Hannover, Germany, phone +49-511-450670-126
email: peter@dzhw.eu
Simon Wiederhold, University of Ingolstadt, D-85049 Ingolstadt, Germany, phone +49-841-937-21855
email: simon.wiederhold@ku.de

Ra., 04.04.2023