The Effect of Childcare on Parental Earnings Trajectories

Matthias Krapf, Anja Roth and Michaela Slotwinski

No 8764, CESifo Working Paper Series from CESifo

Abstract: We study the effect of institutional childcare on child penalties. Using Swiss administrative data, we exploit the staggered opening of childcare facilities across municipalities in the canton of Bern. We find that the presence of childcare facilities in the year of birth of the first child reduces the child penalty. The availability of childcare increases maternal earnings and decreases the compensating increase in fathers’ earnings in households with below median earnings, but not in households with above median earnings. Although childcare affects relative earnings contributions within the household, there is no effect on total household earnings.

Keywords: child penalty; childcare; parental employment; gender wage gap (search for similar items in EconPapers)
JEL-codes: D10 H31 J00 J13 J16 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-dem, nep-eur and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Related works:
Working Paper: The effect of childcare on parental earnings trajectories (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_8764

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