The impact of childcare on maternal employment

Miki Kohara and Mao Nakayama

Pacific Economic Review, 2024, vol. 29, issue 5, 542-566

Abstract: This paper re‐examines the impact of childcare availability on maternal employment in Japan, focusing on the period when childcare centre availability increased dramatically due to government policies in the 2010s aimed at boosting women's labour participation. We use data tracking mothers' employment status after childbirth, merging administrative data on the availability of both standard and nonstandard childcare centres. This is linked to each respondent via location identifiers based on their residential city and the nearest train station. The findings first show that an increase in unlicensed/nonstandard daycare availability significantly raised the proportion of mothers who return to work by the time the child reaches the age of three, particularly in areas with limited access to licensed/standard centres. Secondly, the effects may vary depending on the services offered by the centres. The results suggest that nonstandard centres, often more conveniently located and offering varied services, better meet the needs of working mothers, leading to higher employment rates. This research emphasizes that government efforts to expand childcare options in the 2010s may play a crucial role in promoting maternal labour‐force participation in Japan.

Date: 2024
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https://doi.org/10.1111/1468-0106.12459

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