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Access to Formal Childcare for Toddlers and Parental Employment and Earnings

Author

Listed:
  • Fukai, Taiyo

    (University of Tsukuba)

  • Kondo, Ayako

    (University of Tokyo)

Abstract

This study examines the effect of availability of accredited childcare centers, the most popular category of publicly licensed childcare centers in Japan, on mothers' employment and earnings. We focus on mothers with children less than two years old, most of whom are returning from parental leave to full-time work under excess demand for center-based childcare. We construct an instrument from the first-round assignment process of April enrollment and find that the enrollment to an accredited childcare center increases the employment rate of mothers of zero- and one-year-old children by 40.3 and 18.8 percentage points, respectively. The effect of such enrollment on mothers' annual salary is mostly explained by the extensive margin.

Suggested Citation

  • Fukai, Taiyo & Kondo, Ayako, 2024. "Access to Formal Childcare for Toddlers and Parental Employment and Earnings," IZA Discussion Papers 16880, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16880
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    References listed on IDEAS

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    1. Henrik Kleven & Camille Landais & Johanna Posch & Andreas Steinhauer & Josef Zweimüller, 2024. "Do Family Policies Reduce Gender Inequality? Evidence from 60 Years of Policy Experimentation," American Economic Journal: Economic Policy, American Economic Association, vol. 16(2), pages 110-149, May.
    2. Yamaguchi, Shintaro & Asai, Yukiko & Kambayashi, Ryo, 2018. "Effects of subsidized childcare on mothers’ labor supply under a rationing mechanism," Labour Economics, Elsevier, vol. 55(C), pages 1-17.
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    5. Bauernschuster, Stefan & Schlotter, Martin, 2015. "Public child care and mothers' labor supply—Evidence from two quasi-experiments," Journal of Public Economics, Elsevier, vol. 123(C), pages 1-16.
    6. Elizabeth U. Cascio, 2009. "Maternal Labor Supply and the Introduction of Kindergartens into American Public Schools," Journal of Human Resources, University of Wisconsin Press, vol. 44(1).
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    childcare demand; childcare cost; maternal labor supply;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • H40 - Public Economics - - Publicly Provided Goods - - - General

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