Child Care Provision and Women's Careers in Firms

71 Pages Posted: 31 Mar 2017 Last revised: 17 Jan 2019

See all articles by Vidhi Chhaochharia

Vidhi Chhaochharia

University of Miami - Department of Finance

Suman Ghosh

Florida Atlantic University - Department of Economics

Alexandra Niessen-Ruenzi

University of Mannheim - Department of Finance

Christoph Schneider

Tilburg University - Department of Finance

Date Written: January 16, 2019

Abstract

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

Chhaochharia, Vidhi and Ghosh, Suman and Niessen-Ruenzi, Alexandra and Schneider, Christoph, Child Care Provision and Women's Careers in Firms (January 16, 2019). Available at SSRN: https://ssrn.com/abstract=2943427 or http://dx.doi.org/10.2139/ssrn.2943427

Vidhi Chhaochharia (Contact Author)

University of Miami - Department of Finance ( email )

P.O. Box 248094
Coral Gables, FL 33124-6552
United States

Suman Ghosh

Florida Atlantic University - Department of Economics ( email )

5353 Parkside Dr
Jupiter, FL 33458
United States

Alexandra Niessen-Ruenzi

University of Mannheim - Department of Finance ( email )

Mannheim, 68131
Germany

Christoph Schneider

Tilburg University - Department of Finance ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

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