The Effect of Childcare Access on Women's Careers and Firm Performance

Elena Simintzi, Sheng-Jun Xu and Ting Xu

No 33835, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We study the effects of government-subsidized childcare on women's careers and firm outcomes using linked tax filing data. Exploiting cohort-level variation in childcare access based on a Quebec universal childcare reform, we show that earlier access to childcare not only increases new mothers' employment and earnings, but also prompts them to reallocate careers to firms previously unattractive to new mothers. These firms subsequently benefited from the reform, drawing more young, productive female workers and experiencing better performance. Our results suggest that childcare frictions hamper women's career progression and the allocation of human capital in the labor market.

JEL-codes: G30 G38 J13 J16 J2 J6 M5 (search for similar items in EconPapers)
Date: 2025-05
New Economics Papers: this item is included in nep-dem and nep-sbm
Note: CF CH LS PE PR
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