Abstract
Fuelled by federal stimuli of 440 million Swiss francs, the staggered expansion of childcare in many cantons allows the evaluation of this family policy on female labour supply. With new cantonal data, this study analyses both the decision to participate in the labour market and the intensity of participation. Empirical results of difference-in-differences regressions show that mothers work at higher percentage rates if they live in cantons that have expanded their childcare services more than the national average. The reform stimulated part-time employment of between 20 and 36 h per week by 2 percentage points. The expansion of childcare particularly affected women with two children and upper-secondary education, who are married or cohabit with their partner.
Highlights
Many modern welfare states have prioritised assisting women in their work-family life
The results demonstrate that an expansion in childcare places stimulates part-time employment of between 20 and 36 h per week by 2 percentage points for mothers of 3-year-olds
The treated group has a slightly less educated composition of mothers than the control group, whose mothers are more likely to be Swiss and to be more educated. This socio-demographic composition is unlikely to explain the expansion of childcare places in either of the two groups of cantons
Summary
Many modern welfare states have prioritised assisting women in their work-family life. Recent studies in many Scandinavian countries show that subsidised childcare has had no significant impact on female labour supply (Lundin et al 2008; Havnes and Mogstad 2011b).. Recent studies in many Scandinavian countries show that subsidised childcare has had no significant impact on female labour supply (Lundin et al 2008; Havnes and Mogstad 2011b).1 As these studies suggest, this is probably because the services provided in these countries meet the demand for childcare among all social classes almost perfectly. This is probably because the services provided in these countries meet the demand for childcare among all social classes almost perfectly This does not appear to be the case in Switzerland, where, as in Germany (Wrohlich 2008; Bauernschuster and Schlotter 2015), the demand for childcare is much higher than the supply (Banfi et al 2009).
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