Research
Working Papers
Abstract: We identify the effects of public childcare provision for children under three on parental labor supply. West Germany substantially expanded early childcare through a series of reforms, starting in 2005. Leveraging regional variation in the timing and intensity of this expansion at the county level and using rich administrative data, we estimate that a 10 pp increase in early public childcare coverage reduces mothers' child penalties in earnings by 1.5 to 2.3 pp. Thus, approximately 27\% to 41\% of the overall decline in child penalties (11pp) can be attributed to childcare expansion. Further, early childcare expansion both helps mothers to stay in higher-paying firms and occupations, and benefits low-income mothers working in small firms and living in rural areas, who had high initial child penalties. Finally, we find a decrease in father’s intensive labor supply. In conclusion, early public childcare expansion can trigger changes in parental labor supply in a context of low initial maternal labor supply and limited alternative childcare options.
Work in Progress
Effects of an Unconditional Cash Transfer on Maternal Employment
Abstract: This paper presents novel evidence on the effects of an unconditional cash transfer on maternal labour market outcomes. In 2018, the German state of Bavaria introduced the family allowance, an unconditional payment for families with children under three years of age. Using German administrative data in a difference-in-differences design, I show that the payment negatively affects employment and earnings. The effects start to occur 12 months after birth, increase to negative employment and earnings effects of 1.5 pp and 2pp, respectively, and flatten out after eligibility ends. Additionally, I show that mothers with low pre-birth income and low education show more pronounced negative effects that persist after losing eligibility. Finally, mothers in counties with high childcare availability have no employment effects and a smaller earnings penalty (-1pp).
Do Gender Differences in Smoking and Drinking Behavior Contribute to the Gender Wage Gap? (with Matthias Collischon)
Abstract: Previous research shows that smoking is associated with lower wages, while drinking is associated with higher wages, and that men tend to drink and smoke at higher rates compared to women. Taking these findings as a starting point, this paper investigates whether gender differences in smoking and drinking behavior contribute to gender wage gaps. To this end, we use data from the German Socio-Ecoonomic Panel (SOEP) and unconditional quantile regressions (UQR) combined with decomposition methods to analyze this research question. Our findings show that gender differences in smoking behavior work in favor of women, while gender differences in drinking behavior widen the gender wage gap. Gender differences in smoking and drinking rates and returns can explain around 4% of the overall 18.4% median gender wage gap.