Childcare and Mothers' Labor Market Outcomes in Lower- and Middle-Income Countries

Abstract

Improving women’s labor force participation and the quality of their employment can boost economic growth and support poverty and inequality reduction; thus, it is highly pertinent for the development agenda. However, most systematic reviews on female labor market outcomes and childcare, which can arguably improve these outcomes, are focused on developed countries. This paper reviews 22 studies that plausibly identify the causal impact of institutional childcare on maternal labor market outcomes in lower- and-middle-income countries. All but one study finds positive impacts on the extensive or intensive margin of maternal labor market outcomes, which aligns with findings for developed countries. The paper further analyzes aspects of childcare design, including hours, ages of children, and coordination with other childcare services that may increase the impacts on maternal labor market outcomes. The paper concludes with a discussion of directions for future research.