Child Care Provision and Women's Careers in Firms
71 Pages Posted: 31 Mar 2017 Last revised: 17 Jan 2019
Date Written: January 16, 2019
We investigate the impact of government provided child care on women's careers. Using a unique employer-employee matched data set from Germany, we find that the gender pay-gap decreases if child care provision is high. Women receive higher wage increases and are more likely to be promoted. Results are accentuated for the best paid and highly educated women. Child care provision should increase the pool of qualified women firms can draw from. In line with this view, we show that the negative stock market reaction to a mandated gender quota is mitigated for firms in counties with high child care provision.
Keywords: child care, female wages
JEL Classification: J3, J7
Suggested Citation: Suggested Citation