Research

Fathers’ Response to Public Childcare Expansion: Whether and When to Take Parental Leave (with Nayeon Lim) 

Abstract:  This study examines the impact of public childcare expansion for children under three in Germany on parental labor dynamics, particularly focusing on fathers’ responses to the increased maternal labor supply facilitated by expanded childcare availability. Using ex-

tensive administrative data, we find that the expansion of childcare led fathers to reduce their labor supply in terms of days worked while significantly increasing their uptake of parental leave. Crucially, fathers’ leave-taking patterns closely synchronize with mothers’ return to work, highlighting the joint labor supply and leave-taking decision among couples. These findings provide broader implications for gender equality within households by demonstrating that parents coordinate their labor supply in response to family policies.

Abstract: This paper examines the effects of an unconditional cash transfer on maternal labor supply. Exploiting state-level variation in a difference-in-differences design, using rich administrative data, I find that mothers extend their employment interruptions. The allowance reduces regular employment within the first three years after birth by 2 percentage points. Additionally, both wages and earnings decrease, and mothers are more likely to take up minijobs. Event study analyses reveal that employment effects return to zero when payment eligibility ends, while wage effects persist. Notably, these negative effects are absent in counties with high childcare availability but are more pronounced in areas with low availability. This indicates that the impact of cash transfers on maternal labor supply is contingent on the local childcare infrastructure.