The Effect of Childcare on Parental Earnings Trajectories

50 Pages Posted: 28 Oct 2020

See all articles by Matthias Krapf

Matthias Krapf

University of Lausanne

Anja Roth

Basel Institute on Governance

Michaela Slotwinski

Faculty of Business and Economics, University of Basel; ZEW Mannheim; CESifo (Center for Economic Studies and Ifo Institute)

Multiple version iconThere are 2 versions of this paper

Date Written: 2020

Abstract

We study the effect of childcare availability on child penalties. Using Swiss administrative data, we exploit the staggered opening od 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.

Keywords: Child penalty, Childcare, parental employment, gender wage gap

JEL Classification: D1, J00, J13, J16, H31

Suggested Citation

Krapf, Matthias and Roth, Anja and Slotwinski, Michaela, The Effect of Childcare on Parental Earnings Trajectories (2020). ZEW - Centre for European Economic Research Discussion Paper No. 20-050, Available at SSRN: https://ssrn.com/abstract=3716104 or http://dx.doi.org/10.2139/ssrn.3716104

Matthias Krapf (Contact Author)

University of Lausanne ( email )

Quartier Chambronne
Lausanne, Vaud CH-1015
Switzerland

Anja Roth

Basel Institute on Governance ( email )

Steinenring 60
Basel, 4051
Switzerland

Michaela Slotwinski

Faculty of Business and Economics, University of Basel ( email )

ZEW Mannheim ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

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