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Ältere Frau und älterer Mann bei der Arbeit im Supermarkt (refer to: Countering the shortage of skilled workers – concrete starting points for the labour market) | Source: © WavebreakMediaMicro/stock.adobe.com

Press releaseCountering the shortage of skilled workers – concrete starting points for the labour market

The skills and labour shortage is already posing major challenges for the labour market in Germany. The BiB has identified in its research ways to offset the future decline in the labour force.

Peer-Reviewed Articles in Scientific JournalsSchool entry, afternoon care and mothers’ labour supply

Gambaro, Ludovica; Marcus, Jan; Peter, Frauke (2019)

Empirical Economics: 769–803

DOI: 10.1007/s00181-018-1462-3

The availability of childcare is a crucial factor for mothers’ labour force participation. While most of the literature examines childcare for preschool children, we specifically focus on primary school-aged children, estimating the effect of formal afternoon care on maternal labour supply. To do so, we use a novel matching technique, entropy balancing, and draw on the rich and longitudinal data of the German Socio-Economic Panel (SOEP). We show that children’s afternoon care increases mothers’ employment rates and their working hours. To confirm the robustness of our results, we conduct a series of sensitivity analyses and apply a newly proposed method to assess possible bias from omitted variables. Our findings highlight how childcare availability shapes maternal employment patterns well after school entry.