The Effect of Childcare on Parental Earnings Trajectories

Arbeitspapier

We study the effect of institutional childcare on child penalties. Using Swiss administrative data, we exploit the staggered opening of childcare facilities across municipalities in the canton of Bern. We find that the presence of childcare facilities in the year of birth of the first child reduces the child penalty. The availability of childcare increases maternal earnings and decreases the compensating increase in fathers’ earnings in households with below median earnings, but not in households with above median earnings. Although childcare affects relative earnings contributions within the household, there is no effect on total household earnings.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 8764

Classification and Topics

• Classification: Wirtschaft ; Household Behavior: General ; Labor and Demographic Economics: General ; Fertility; Family Planning; Child Care; Children; Youth ; Economics of Gender; Non-labor Discrimination ; Fiscal Policies and Behavior of Economic Agents: Household
• Subject: child penalty ; childcare ; parental employment ; gender wage gap

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Krapf, Matthias ; Roth, Anja ; Slotwinski, Michaela
• Event: Veröffentlichung
• (who): Center for Economic Studies and Ifo Institute (CESifo)
• (where): Munich
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/229582
• Last update: 10.03.2025, 11:42 AM CET