American Economic Journal:
Applied Economics
ISSN 1945-7782 (Print) | ISSN 1945-7790 (Online)
Childcare, Labor Supply, and Business Development: Experimental Evidence from Uganda
American Economic Journal: Applied Economics
vol. 17,
no. 2, April 2025
(pp. 75–101)
Abstract
We randomly offered a childcare subsidy, an equivalent cash grant, or both to mothers of three-to-five-year-old children. The childcare subsidy substantially increased the labor supply and earnings of single mothers, highlighting the importance of time constraints for them. Among couples, childcare did not affect mothers' labor market outcomes but instead increased fathers' salaried employment. At the household level, childcare led to higher income and consumption and improved child development. Cash grants positively affected mothers' labor supply and income irrespective of the household structure, suggesting the general importance of credit constraints for women's business development.Citation
Bjorvatn, Kjetil, Denise Ferris, Selim Gulesci, Arne Nasgowitz, Vincent Somville, and Lore Vandewalle. 2025. "Childcare, Labor Supply, and Business Development: Experimental Evidence from Uganda." American Economic Journal: Applied Economics 17 (2): 75–101. DOI: 10.1257/app.20230227Additional Materials
JEL Classification
- H24 Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
- J13 Fertility; Family Planning; Child Care; Children; Youth
- J16 Economics of Gender; Non-labor Discrimination
- J22 Time Allocation and Labor Supply
- J31 Wage Level and Structure; Wage Differentials
- O12 Microeconomic Analyses of Economic Development