Who benefits from cash-for-care? The effects of a home care subsidy on maternal employment, childcare choices, and children's development

Collischon M, Kuehnle D, Oberfichtner M (2024)

Publication Language: English

Publication Status: Accepted

Publication Type: Unpublished / Preprint

Future Publication Type: Journal article

Publication year: 2024

Journal

Journal of Human Resources

Abstract

We provide comprehensive evidence on Germany’s home care subsidy for one and two year-old children. In West Germany, take-up was 60% and the subsidy reduced mothers’ probability to work within three years after childbirth by 1.4 percentage points and increased exclusive parental care by 6.5 percentage points. The subsidy improved children’s development at age six, with the exception of children who do not speak German at home. In East Germany, 30% of families used the subsidy, neither affecting maternal employment nor exclusive parental care. As an income transfer, the subsidy did not benefit families with the least economic resources most.

Authors with CRIS profile

Michael Oberfichtner Professur für betriebliche Arbeitsmarkt- und Berufsforschung

Involved external institutions

Universität Duisburg-Essen (UDE) DE Germany (DE) Institut für Arbeitsmarkt- und Berufsforschung (IAB) der Bundesagentur für Arbeit (BA) DE Germany (DE)

How to cite

APA:

Collischon, M., Kuehnle, D., & Oberfichtner, M. (2024). Who benefits from cash-for-care? The effects of a home care subsidy on maternal employment, childcare choices, and children's development. (Unpublished, Accepted).

MLA:

Collischon, Matthias, Daniel Kuehnle, and Michael Oberfichtner. Who benefits from cash-for-care? The effects of a home care subsidy on maternal employment, childcare choices, and children's development. Unpublished, Accepted. 2024.

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