Artikel

Effects of a Universal Childcare Subsidy on Mothers' Time Allocation

This paper examines the effects of a universal childcare subsidy on childcare decisions and mothers' employment by using Korea's policy reform of 2012, which provided a full childcare subsidy to all children aged 0 to 2. I find that the introduction of a universal childcare subsidy increased the use of childcare centers by children aged 0-2, which led to less maternal care compared to that provided to children aged 3-4. However, the expanded subsidy had little effect on mothers' labor supply. Moreover, the policy effects vary by individual and household characteristics. The effects of the expanded subsidy are mainly found in low-income households and less educated mothers. Highly educated mothers and high-income households are likely to focus more on the quality of childcare service. These results imply that a simple reduction in childcare costs would bring only limited effects on mothers' time allocation behavior; thus, more attention should be paid to improving the quality of childcare services.

Language
Englisch

Bibliographic citation
Journal: KDI Journal of Economic Policy ; ISSN: 2586-4130 ; Volume: 38 ; Year: 2016 ; Issue: 1 ; Pages: 1-22 ; Sejong: Korea Development Institute (KDI)

Classification
Wirtschaft
Fertility; Family Planning; Child Care; Children; Youth
Labor Force and Employment, Size, and Structure
Time Allocation and Labor Supply
Education: Government Policy
Subject
Universal childcare
Childcare subsidy
Quality of care
Mothers' time allocation

Event
Geistige Schöpfung
(who)
Lee, Young Wook
Event
Veröffentlichung
(who)
Korea Development Institute (KDI)
(where)
Sejong
(when)
2016

DOI
doi:10.23895/kdijep.2016.38.1.1
Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Artikel

Associated

  • Lee, Young Wook
  • Korea Development Institute (KDI)

Time of origin

  • 2016

Other Objects (12)