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Children, Publicly Provided Childcare, and Parent Employment

Paper Session

Sunday, Jan. 4, 2026 2:30 PM - 4:30 PM (EST)

Philadelphia Convention Center, 308
Hosted By: American Economic Association
  • Chair: Yana Gallen, University of Chicago

Parents' Earnings and the Returns to Universal Pre-Kindergarten

John Eric Humphries
,
Yale University
Christopher Neilson
,
Yale University
Xiaoyang Ye
,
Amazon
Seth D. Zimmerman
,
Yale University

Abstract

This paper asks whether universal pre-kindergarten (UPK) programs can increase parental earnings and, if so, how much these gains affect the economic returns to UPK. Using admissions lotteries for an extended-day UPK program in New Haven, Connecticut, we find that UPK enrollment increases childcare coverage to span the workday and raises parents' earnings by 21.7% during pre-kindergarten. Gains persist for at least six years. We find little evidence of effects on children's academic and behavioral outcomes during elementary and middle school. Combining these results, we demonstrate that tax revenues from parents' earnings gains reduce the net government costs of UPK by 90% relative to estimates that ignore gains for parents. Overall, we estimate that each dollar spent yields $10 in benefits. Our findings demonstrate the potential of UPK programs that combine quality education with full-day childcare and underscore the importance of thinking about parents when designing and evaluating early-childhood policies.

Short and Long Run Maternal Labor Supply Responses to Publicly Provided Schooling for Children

Jocelyn Wikle
,
Brigham Young University
Riley Wilson
,
Brigham Young University

Abstract

This study examines how access to public early childhood education in the U.S. impacts mothers’ labor supply decisions in the short and long term. Over the past 70 years, female labor force participation has surged, yet gender disparities in employment persist, partly due to the disproportionate childrearing responsibilities women face. Publicly funded early childhood education may alleviate these constraints, influencing mothers’ labor supply. The study links data from children’s birth records in the Numident with a panel of mothers’ employment from the LEHD from the early 2000s to 2014. We use statewide kindergarten cutoff deadlines to determine when a child becomes eligible for kindergarten. Using a Regression Discontinuity design based on children’s kindergarten eligibility cutoffs, we estimate maternal employment responses to gaining access to publicly provided kindergarten one year earlier than untreated families.

Results show a modest employment increase of 0.23 percentage points for mothers with early kindergarten access, lasting two years before diminishing, demonstrating a role for early childhood education in relaxing mothers’ immediate time constraints as well as supporting mothers’ employment beyond the treatment year. Our findings imply that mothers’ employment continue to be sensitive to access to affordable childcare. Effects are strongest for highly educated mothers and those with no younger children. Additionally, employment responses are greater in regions with traditional gender norms. Mothers in areas that offer a longer school day have stronger and more persistent employment responses, suggesting that in addition to access to early childhood education, the design and timing of the program remains relevant for the employment responses of mothers.

Preschool as Child Care: Head Start Duration Expansions and Maternal Employment

Chloe Gibbs
,
University of Notre Dame
Esra Kose
,
University of California-Merced
Maria Rosales-Rueda
,
University of Delaware

Abstract

Early childhood care and education settings serve two purposes simultaneously: supporting children's development and early learning, and facilitating parents' gainful activities. We examine how access to full-day Head Start programs affects maternal labor supply, leveraging a recent funding eligibility rule that expanded the duration of Head Start programs. In 2016, the U.S. Department of Health and Human Services announced the availability of supplemental funds to extend the duration of Head Start programming. Head Start grantees serving fewer than 40 percent of their center-based slots for a full school day and full school year were eligible to apply.

Our analysis leverages this policy threshold and combines data on Head Start enrollment and center locations with parents' employment data from the annual American Community Survey from 2008 to 2020. We first demonstrate that the 2016 funding availability significantly increased full-time Head Start enrollment. Next, using variation in access to full-day Head Start across place and time, we find that single mothers of preschool-aged children increase their labor force participation and work more hours per week. Our findings provide new evidence on the broader effects of early childhood investments on mothers' economic opportunities.

Sick Days, Snow Days, and the Labor Market Impacts of Caretaking Inequities

Garrett Anstreicher
,
University of Nebraska
Rebecca Jack
,
University of Nebraska

Abstract

We study how unexpected disruptions impact the labor supply and downstream labor market outcomes of parents in the United States, focusing in particular on events where children cannot attend childcare due to illness or weather-related issues. Using the Current Population Survey and variation at the county-month level in either snowfall or flu-related mortality, we find that mothers bear the entire brunt of these disruptions in terms of missing work. These effects are concentrated among mothers of higher socioeconomic status and have remained stable over the 21st century. Our findings add to our understanding of the determinants of labor market penalties associated with motherhood and point to the potential usefulness of workplace policies to accommodate childcare problems.

Discussant(s)
Elizabeth Cascio
,
Dartmouth College
Douglas Miller
,
Cornell University
JEL Classifications
  • J2 - Demand and Supply of Labor
  • H4 - Publicly Provided Goods