The Effect of Childcare on Parental Earnings Trajectories

59 Pages Posted: 15 Dec 2020

See all articles by Matthias Krapf

Matthias Krapf

University of Lausanne

Anja Roth

University of Basel

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 institutional childcare on child penalties. Using Swiss administrative data, we exploit the staggered opening of 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.

JEL Classification: D100, J000, J130, J160, H310

Suggested Citation

Krapf, Matthias and Roth, Anja and Slotwinski, Michaela, The Effect of Childcare on Parental Earnings Trajectories (2020). CESifo Working Paper No. 8764, Available at SSRN: https://ssrn.com/abstract=3748965 or http://dx.doi.org/10.2139/ssrn.3748965

Matthias Krapf

University of Lausanne ( email )

Quartier Chambronne
Lausanne, Vaud CH-1015
Switzerland

Anja Roth

University of Basel ( email )

Petersplatz 1
Basel, CH-4003
Switzerland

Michaela Slotwinski (Contact Author)

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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