Universal Full-Day Kindergarten and Maternal Labor Supply: A Life-Cycle Analysis

Area of Science:

• Economics
• Sociology
• Public Policy

Background:

• Mothers' labor supply decisions are influenced by childcare costs and availability.
• Previous studies link childcare subsidies to increased maternal employment.
• The impact of universal free full-day kindergarten on labor supply requires further investigation.

Purpose of the Study:

• To estimate the effect of state-level universal free full-day kindergarten policies on mothers' labor supply.
• To analyze the impact across different age groups of children.

Main Methods:

• Life-cycle analysis framework.
• Estimation of labor force participation rates before and after policy implementation.

Main Results:

• Free full-day kindergarten increased labor force participation for mothers with kindergarten-aged children by 4.3-7.1 percentage points.
• Participation increased for mothers with infants (7.2-9.8 pp) and 3-4 year olds (5.9-7.9 pp) even more significantly.
• The policy's impact on mothers of younger children suggests broader effects of subsidized childcare.

Conclusions:

• Universal free full-day kindergarten is a significant policy lever for increasing maternal labor force participation.
• The positive effects extend beyond families with kindergarten-aged children, indicating substantial benefits of subsidized childcare.
• Life-cycle labor supply models help explain these broader impacts on maternal employment.