Effects of Subsidized Childcare on Mothers' Labor Supply Under a Rationing Mechanism*

Shintaro Yamaguchi, Yukiko Asai and Ryo Kambayashi (ryo.kambayashi@cc.musashi.ac.jp)

Department of Economics Working Papers from McMaster University

Abstract: We estimate the marginal treatment effect of childcare use on mothers' labor market outcomes by exploiting a staggered childcare expansion across regions in Japan. The estimates show that the treatment effect is negatively associated with propensity to use childcare, which implies that mothers who increase their labor supply more are less likely to use childcare. Negative selection into treatment arises, because the childcare rationing rule gives preferential treatment to mothers working full-time before childcare application. These mothers are strongly attached to the labor market and likely to work regardless of the availability of subsidized childcare.

JEL-codes: H4 J2 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2017-04-18
New Economics Papers: this item is included in nep-lma
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http://socserv.mcmaster.ca/econ/rsrch/papers/archive/McMasterEconWP2017-06.pdf (application/pdf)

Related works:
Journal Article: Effects of subsidized childcare on mothers’ labor supply under a rationing mechanism (2018)
Working Paper: Effects of Subsidized Childcare on Mothers’ Labor Supply Under a Rationing Mechanism (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:mcm:deptwp:2017-06

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