Childcare, Labor Supply, and Business Development: Experimental Evidence from Uganda

Kjetil Bjorvatn, Denise Ferris, Selim Gulesci, Arne Nasgowitz, Vincent Somville and Lore Vandewalle

American Economic Journal: Applied Economics, 2025, vol. 17, issue 2, 75-101

Abstract: We randomly offered a childcare subsidy, an equivalent cash grant, or both to mothers of three-to-five-year-old children. The childcare subsidy substantially increased the labor supply and earnings of single mothers, highlighting the importance of time constraints for them. Among couples, childcare did not affect mothers' labor market outcomes but instead increased fathers' salaried employment. At the household level, childcare led to higher income and consumption and improved child development. Cash grants positively affected mothers' labor supply and income irrespective of the household structure, suggesting the general importance of credit constraints for women's business development.

JEL-codes: H24 J13 J16 J22 J31 O12 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1257/app.20230227

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