Can early public childcare reduce child penalties? Evidence from Germany

Beschreibung

"This paper studies the effects of public childcare expansion for children under age three in Germany on mothers’child penalties. Exploiting county-level variation in the expansion, we find that a 20-percentage-point increase in childcare coverage rate reduces earnings penalties by 4.5 percentage points. This accounts for about 56% of the total 8-percentage-point decline in earnings penalties over the reform period. Early childcare increases employment and days worked, especially in full-time and non-marginal positions. It also raises daily wages and increases the likelihood that mothers work in higher-paying firms and occupations. These effects persist beyond the early childcare eligibility period. We further identify two key contextual factors explaining the positive effects of early childcare: the initial level of child penalties and reliance on informal care. In settings with high child penalties and limited alternatives, early public childcare can yield substantial lasting benefits for mothers’ careers." (Author's abstract, IAB-Doku, © 2026 The Author(s). Published by Elsevier B.V.) ((en))

Zitationshinweis

Duletzki, Lisa-Marie & Nayeon Lim (2026): Can early public childcare reduce child penalties? Evidence from Germany. In: Journal of Public Economics, Jg. 258. DOI:10.1016/j.jpubeco.2026.105651