Does Access to Free Pre-Kindergarten Increase Maternal Labor Supply?

Abstract

In this paper we evaluate the effects of free pre-kindergarten (Pre-K) programs on the
labor force participation of mothers. We use variation in Pre-K rules across all U.S.
states, including income eligibility requirements in some states. To estimate the causal
effects of access to pre-K on labor supply we exploit the panel aspect of the monthly
Current Population Survey between 2002-2019. Specifically we look at the change in
labor market behavior of women when their child becomes age-eligible for Pre-K, controlling for individual factors. We find that access to free Pre-K programs increases
overall maternal LFP by 2.3 percentage points. In particular, we find that mothers
with the following demographic characteristics significantly increase their labor supply
as a result of an access to free Pre-K: married, college educated, White non-Hispanic,
residents of metropolitan areas, and those with income either below 200 percent or
above 400 percent of the Federal Poverty Level (FPL). Our results are robust across a
series of placebo tests and alternative specifications and sample restrictions.

Keywords: Maternal labor force participation, child care policies, universal pre-K, gender equality policies, early education policies

JEL Classification: G50, H21, H23, I31, J01, J08, J15, J16, J18, J21, J22