Childcare Policy Reforms: The Dynamic Interplay of Childcare Quality and Availability on Mother’s Employment Re-Entry

Henrik-Alexander Schubert , Max-Planck Institute for Demographic Research

This article investigates the recent childcare policy reforms in Germany and their effects on maternal employment. Latest reforms predominantly expanded availability, thus mothers are generally expected to return faster to employment after giving birth. However, the federal states (Länder) had the freedom to invest differently, so that the childcare characteristics and their evolution vary considerably at the subnational level. I examine, whether the regional childcare characteristics and their development over time affect the transition to employment of first-time mothers in the first three years after childbirth. In a piece-wise constant exponential model, using data from the public statistical agencies and the Pairfam-panel, I relate the time outside employment following first childbirth to childcare availability and quality in the federal states in the period between 2006 and 2018. The results show that expansions of availability accelerate mothers’ transition to employment particularly in the first two years after childbirth, but not in the third year. Quality improvements proportionally increase the rate of transitions to employment over three years. I conclude that family policies shape the available choices for parents and that childcare expansion filled an earlier unmet need.

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 Presented in Session P1. Postercafe