Universal Daycare and Mothers Working Lifetime

Sarah Sander
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Sarah Sander: Department of Economics, University of Copenhagen

No 24-13, CEBI working paper series from University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI)

Abstract: This paper examines the effects of universal daycare on mothers labor force participation,full-time employment, and earnings over their working lifetime. I exploit differential access to daycare caused by a roll-out of daycare centers across Denmark in combination with rich administrative data. Daycare availability has persistent effects on labor force participation and increases long-run earnings. Reduced fertility and parental separation are potential mediators behind the participation effects. For higher-educated mothers, participation effects diminish over time, whereas earnings effects prevail in the long run. These results suggest that labor market attachment during child-rearing years has important long-run economic consequences.

Keywords: child care; female labor supply (search for similar items in EconPapers)
JEL-codes: J13 J22 (search for similar items in EconPapers)
Pages: 58
Date: 2024-05-21
New Economics Papers: this item is included in nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:kud:kucebi:2413

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