Childcare availability and Women’s earnings in the U.S
摘要
Extensive research shows that women earn less than men, and mothers earn less than women without children. In fact, the “motherhood penalty” accounts for much of the remaining gender wage gap. Since having children can reduce women’s earnings, access to childcare may play a crucial role in mitigating this effect and boosting women’s income. In this study we consider descriptive evidence of the relationship between childcare availability, defined geographically at the county level, and local women’s earnings. To account for potential spatial spillovers from childcare markets extending beyond county boundaries, we employ a spatial econometric model. This method is well suited for studying childcare markets which function regionally and their local economic effects, as well as for considering variation in this relationship by rurality. We find that in places with greater access to childcare, annual median women earnings are higher as is the ratio of female to male earnings. We also find evidence of interactions between neighboring places, highlighting the reality of cross-community childcare demand and need for regionally-informed childcare policies.