Work

Childcare, Labor Supply, and Business Development: Experimental Evidence from Uganda

Year: 2025

Type: article

Study designs: Randomized Controlled Trial, Clinical Trial

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. (JEL H24, J13, J16, J22, J31, O12)

Source: American Economic Journal Applied Economics

DOI: 10.1257/app.20230227

Authors: Kjetil Bjorvatn, Denise Ferris, Selim Gulesci, Arne Nasgowitz, Vincent Somville, Lore Vandewalle

Institutions: Norwegian School of Economics, BRAC, Trinity College Dublin, Graduate Institute of International and Development Studies, KU Leuven

Language: English

Topic: Gender, Labor, and Family Dynamics

Subfield: Gender Studies

Field: Social Sciences

Domain: Social Sciences

SDGs: Decent work and economic growth, No poverty, Gender equality, Reduced inequalities

Open Access status: green

OpenAlex ID: W4408885704

FWCI: 18.3

Cites: 66

Cited by: 21

Related to: 10