Impact of subsidized childcare on maternal employment: A comparative study on native and migrant women in Germany

Abstract

This study explores the impact of subsidized childcare on maternal employment, focusing on the heterogeneous effects of Germany's Childcare Funding Act (2013) on native and first- and second-generation migrant mothers. Despite lower childcare use and higher unemployment rates among migrant women, research on this topic has been limited. Using the SOEP dataset from 2010 to 2019 and a triple difference approach, we find that subsidized childcare significantly increases maternal employment, particularly for mothers with children aged 2, with lasting effects. However, migrant women's policy responses remain lower than that of natives and no significant differences are observed between the first- and second-generation mothers. Our findings, hence, provide insights for policymaking which targets labour market integration of migrant women.