Female employment and pre-kindergarten: On the unintended effects of an Italian reformAbstract: We theoretically show that when mothers need to buy childcare services not only if they work but also if they want to search actively for a job, a reduction in the price of childcare will increase their likelihood of searching but may decrease their willingness to accept a job offer and therefore lower employment. We test these predictions empirically by means of a Regression Discontinuity design and find that the introduction in Italy of pre-kindergarten, a much cheaper alternative to day care for 2-year-old children, increased both participation in the labour market and employment of mothers of eligible children. This effect was driven largely by a significant decrease in the stated reservation wage. For a full evaluation of the policy we finally provide evidence that pre-kindergarten did not affect children’s cognitive development as measured at second grade. Length: 56 pages
Francesca Carta and
No 91, Working Papers from "Carlo F. Dondena" Centre for Research on Social Dynamics (DONDENA), Università Commerciale Luigi Bocconi
Keywords: child care; female labour supply; public services (search for similar items in EconPapers)
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