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Where does public childcare boost female labor force participation? Exploring geographical heterogeneity across Germany 2007–2017

Neuberger, Franz; Rüttenauer, Tobias; Bujard, Martin; (2022) Where does public childcare boost female labor force participation? Exploring geographical heterogeneity across Germany 2007–2017. Demographic Research , 46 , Article 24. 10.4054/demres.2022.46.24. Green open access

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Abstract

Background: Public childcare provision and female labor force participation (FLP) have strongly increased over the past decades in European societies. However, studies offer heterogeneous findings on the link between public childcare and FLP. Objective: We investigate the link between public childcare and FLP, using different indicators of childcare and accounting for heterogeneous time trends and regional heterogeneity. Methods: Based on a balanced panel of all German counties from 2007 to 2017, we estimate the effect of an increasing enrollment rate for children aged 0–2 and 3–5 on FLP. We compare fixed effect (FE) and fixed effect individual slope estimators (FEIS) to control for county-specific time trends. Subsequently, we compare the results across regions with different levels of urbanization. Results: We find that most FE results are biased due to selection on trends. Still, when accounting for selection on trends, childcare enrollment for the age group 0–2 increases FLP in West Germany and in urban areas. Furthermore, childcare enrollment for children aged 3–5 years is associated with higher FLP in West Germany, in rural and, most strongly, in metropolitan areas. Conclusions: Our study highlights important heterogeneity in the general time trends of FLP and the effectiveness of childcare arrangements across different regions in Germany. Contribution: We provide a potential explanation for mixed results in previous studies. Moreover, our findings demonstrate that the effectiveness of childcare arrangements varies with the level of urbanization. Taking this heterogeneity into account can help to develop target-oriented policy interventions.

Type: Article
Title: Where does public childcare boost female labor force participation? Exploring geographical heterogeneity across Germany 2007–2017
Open access status: An open access version is available from UCL Discovery
DOI: 10.4054/demres.2022.46.24
Publisher version: https://doi.org/10.4054/demres.2022.46.24
Language: English
Additional information: © 2022 Franz Neuberger, Tobias Rüttenauer & Martin Bujard. This open-access work is published under the terms of the Creative Commons Attribution 3.0 Germany (CC BY 3.0 DE), which permits use, reproduction, and distribution in any medium, provided the original author(s) and source are given credit. See https://creativecommons.org/licenses/by/3.0/de/legalcode
UCL classification: UCL > Provost and Vice Provost Offices > School of Education > UCL Institute of Education
UCL > Provost and Vice Provost Offices > School of Education > UCL Institute of Education > IOE - Social Research Institute
UCL > Provost and Vice Provost Offices > School of Education
UCL
URI: https://discovery-pp.ucl.ac.uk/id/eprint/10155689
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