Technical Report Crowding-Out Effect of Publicly Provided Childcare: Why Maternal Employment Did Not Increase

Asai, Yukiko  ,  Kambayashi, Ryo  ,  Yamaguchi, Shintaro

2015-07 , Institute of Economic Research, Hitotsubashi University
We estimate the causal effects of childcare availability on the maternal employment rate using prefecture panel data constructed from the Japanese quinquennial census 1990-2010. We find that childcare availability did not increase maternal employment due to the crowding-out effects. Namely, families substituted accredited childcare for informal care by grandparents. We also find evidence that more and more families do not live with grandparents who used to take care of grandchildren, as the availability of accredited childcare increases.

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