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Countries with a higher availability of affordable childcare exhibit high maternal labor force participation rates. The provision of childcare, especially for pre-schoolaged children, helps mothers achieve a satisfactory work-life balance. Higher childcare subsidies result in a substantial increase in childcare utilization. Larger labor supply effects occur in countries where employed single parents or two-earner couples are eligible for the subsidies.
Daniela Vuri (Fri,) studied this question.
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