The impact of minimum wage on parental time allocation to children: evidence from the American Time Use Survey.

Abstract

In this study, using data from the 2003–2019 American Time Use Survey (ATUS), we investigate whether changes in the minimum wage have impacted time allocation to children among low-educated mothers and fathers. Relying on geographic and temporal variation in minimum wage changes across US states, we investigate the impacts of minimum wage increases on total time spent at home with children, time spent on primary childcare, and time spent on enriching childcare activities. Our results indicate that an increase in the minimum wage has a large positive effect on the time low-educated mothers spend on primary childcare and enriching time, with no effect among low-educated fathers. We find that Black mothers with less than a high school education see the biggest gains, with an increase in time spent on childcare and time spent on enriching childcare activities by 13.8 and 15.8 min per day, respectively, for each $1 increase in the minimum wage. We also see that single mothers’ time investment is largely unaffected by minimum wage changes, suggesting that there are still considerable income constraints facing these families. Lastly, we see that less educated families with children under the age of 7 significantly increase time spent on primary childcare and enriching time from minimum wage increases, given that they may not have the ability to afford private childcare.