A new GLO Discussion Paper provides evidence that childcare use affects labor market outcomes of parents positively in Vietnam.
GLO Discussion Paper No. 349, 2019
Childcare and Maternal Employment: Evidence from Vietnam – Download PDF
by Dang, Hai-Anh H. & Hiraga, Masako & Nguyen, Cuong Viet
GLO Fellow Hai-Anh Dang
Author Abstract: 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. We attempt 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, we find 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.
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