Crowding-Out Effect of Subsidized Childcare

24 Pages Posted: 23 Jul 2015 Last revised: 9 May 2016

See all articles by Yukiko Asai

Yukiko Asai

University of Tokyo - Institute of Social Science

Ryo Kambayashi

Hitotsubashi University

Shintaro Yamaguchi

University of Tokyo - Graduate School of Economics

Date Written: February 13, 2016

Abstract

We estimate the causal effects of childcare availability on the maternal employment rate using prefecture panel data constructed from the Japanese quinquennial census 1990-2010. We find that childcare availability did not increase maternal employment, because the expansion of accredited childcare crowded out informal childcare provided by grandparents. However, as more and more families do not live with grandparents who used to take care of grandchildren, this crowding effect became weaker in the 2000's.

Keywords: childcare; female labor supply; maternal employment; nuclear family; three-generation family

JEL Classification: J13, J21, J22

Suggested Citation

Asai, Yukiko and Kambayashi, Ryo and Yamaguchi, Shintaro, Crowding-Out Effect of Subsidized Childcare (February 13, 2016). Available at SSRN: https://ssrn.com/abstract=2634283 or http://dx.doi.org/10.2139/ssrn.2634283

Yukiko Asai

University of Tokyo - Institute of Social Science ( email )

Hongo 7-3-1
Tokyo, TOKYO 113-0033
Japan

Ryo Kambayashi

Hitotsubashi University ( email )

2-1 Naka Kunitachi-shi
Tokyo 186-8601
Japan

HOME PAGE: http://www.ier.hit-u.ac.jp/English/faculty/kambayashi.html

Shintaro Yamaguchi (Contact Author)

University of Tokyo - Graduate School of Economics ( email )

Tokyo
Japan

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