Childcare Regulation and the Fertility Gap

Abstract

Children require care. The market for childcare has received much attention in recent years as many countries consider subsidizing or supplying childcare as a response to dropping birth rates. However, the relationship between childcare markets and the fertility gap-the difference between desired and achieved fertility-is yet to be explored. We build upon previous work by investigating the regulation of childcare and fertility gaps across the U.S. states. Our results consistently show fewer childcare regulations are associated with smaller fertility gaps. This suggests that women are better able to achieve their fertility goals in policy environments that allow for more flexibility in childcare options and lower costs.

Keywords: Childcare, Fertility, Fertility Gap, Regulation

JEL Classification: D10; J13; H70