Childcare and Maternal Employment : Evidence from Vietnam

Little literature currently exists on the effects of childcare use on maternal labor market outcomes in a developing country context, and recent studies offer mixed results. This paper attempts to fill these gaps by analyzing several of the latest...

Full description

Bibliographic Details
Main Authors: Dang, Hai-Anh H., Hiraga, Masako, Nguyen, Cuong Viet
Format: Working Paper
Language:English
Published: Washington, DC: World Bank 2019
Subjects:
Online Access:http://documents.worldbank.org/curated/en/739441558098304418/Childcare-and-Maternal-Employment-Evidence-from-Vietnam
http://hdl.handle.net/10986/31971
Description
Summary:Little literature currently exists on the effects of childcare use on maternal labor market outcomes in a developing country context, and recent studies offer mixed results. This paper attempts to fill these gaps by analyzing several of the latest rounds of the Vietnam Household Living Standards Survey spanning the early to mid-2010s. Addressing endogeneity issues with a regression discontinuity estimator based on children's birth months, the paper finds a sizable effect of childcare attendance on women's labor market outcomes, including their total annual wages, household income, and poverty status. The effects of childcare attendance differ by women's characteristics and are particularly strong for younger, more educated women. Furthermore, childcare has a medium-term effect and positively impacts men's labor market outcomes as well.