Effects of Subsidized Childcare on Mothers' Labor Supply Under a Rationing Mechanism

46 Pages Posted: 20 Apr 2017 Last revised: 10 Sep 2018

See all articles by Shintaro Yamaguchi

Shintaro Yamaguchi

University of Tokyo - Graduate School of Economics

Yukiko Asai

University of Tokyo - Institute of Social Science

Ryo Kambayashi

Hitotsubashi University

Date Written: September 5, 2018

Abstract

We estimate the marginal treatment effect of childcare use on mothers' labor market outcomes by using a staggered expansion of childcare services across regions in Japan. The estimates show that the heterogeneous treatment effects are negatively associated with the propensity to use childcare, which implies that mothers who increase their labor supply the least when subjected to the treatment are those mothers with the highest underlying tendency to use childcare. Because the childcare rationing rule tends to allocate childcare slots to mothers who work full-time before they apply, the slots tend to go to mothers who have the strongest labor force attachment, who are also the mothers who tend to have the strongest propensity to use childcare.

Keywords: childcare, female labor supply, marginal treatment effect, difference-in-differences

JEL Classification: H4, J2

Suggested Citation

Yamaguchi, Shintaro and Asai, Yukiko and Kambayashi, Ryo, Effects of Subsidized Childcare on Mothers' Labor Supply Under a Rationing Mechanism (September 5, 2018). Available at SSRN: https://ssrn.com/abstract=2954882 or http://dx.doi.org/10.2139/ssrn.2954882

Shintaro Yamaguchi (Contact Author)

University of Tokyo - Graduate School of Economics ( email )

Tokyo
Japan

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

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