Who Benefits from Cash‐for‐Care?

Source: For children born in 2012, own calculations are based on KiBS data from Wave 4 (interviews 2014–2015) for children born between March and December, West Germany only, using cross‐sectional survey weights. The estimation sample includes Waves 2 and 3 (interviews 2012–2014) for children born between March 2011 and December 2012.

Notes: DiD estimate shows the DiD coefficient from regressions of the given variable according to Equation 1. Robust standard errors in parentheses. Significance levels: ^*p < 0.10, ^**p < 0.05, ^***p < 0.01.

Source: For children born in 2012, own calculations based on school entrance examinations data for children born in July and August 2012, Schleswig‐Holstein only. The estimation sample includes all children born in July and August between 2007 and 2012.

Notes: DiD estimate shows the DiD coefficient from regressions of the given variable according to Equation 1. Robust standard errors in parentheses. Significance levels: ^*p < 0.10, ^**p < 0.05, ^***p < 0.01.

Source: Own calculations based on KiBS Wave 4 (2014–2015) for children born between August 2012 and December 2013, West Germany only, children aged 12–36 months, using cross‐sectional survey weights.

Source: Own calculations based on KiBS Wave 4 (2014–2015) for children born between August 2012 and December 2013, West Germany only, children aged 12–36 months, using cross‐sectional survey weights.

Source: Own calculations based on BEH data for for children born between March 2008 and December 2013, West Germany only.

Notes: Outcomes are measured 36 months after birth. Cumulated employment is measured in days, cumulated labor income in euros. Controls in X_i are district fixed effects, age at birth dummies (<25, 25–30, 30–35, 30–40, >40), wage prior to birth dummies (<20, 20–40, 40–60, 60–80, 80–100, 100–120, >120), tertiary education (dummy), and dummies for missing values in either. Childcare availability is defined as the ratio of childcare slots divided by the number of children under three years at the district level. Robust standard errors in parentheses. Significance tests for the differences between the group are as follows: Education: returned to work: p = 0.36, employment: p = 0.25, income: p = 0.62. Nationality: returned to work: p = 0.87, employment: p = 0.89, income: p = 0.89. Childcare availability: returned to work: p = 0.33, employment: p = 0.19, income: p = 0.30. Significance levels: ^*p < 0.10, ^**p < 0.05, ^***p < 0.01.

Source: Own calculations based on KiBS Waves 2 and 3 (interviews 2012–2014) for children born between March 2011 and December 2012, West Germany only.

Notes: DiD analysis. Exclusively parental care is defined as the absence of informal care and care by a subsidized provider. Controls are maternal age at birth dummies (<25, 25–30, 30–35, 35–40, >40), survey wave dummies, federal state fixed effects, maternal tertiary education (dummy), and children’s age in month dummies. Dummies for missing values in any control variable are included as well. Cluster robust (on mother’s level) standard errors in parentheses. Significance tests for the differences for the treatment effect on exclusively parental, subsidized, and informal care between each group are as follows, respectively: Education: p = 0.24, 0.85, 0.38; German at home: p = 0.96, 0.86, 0.66; Mother born in Germany: p = 0.91, 0.64, 0.63. Significance levels: ^*p < 0.10, ^**p < 0.05, ^***p < 0.01.

Source: Own calculations based on school entrance examinations data for children born in July or August between 2007 and 2012, Schleswig‐Holstein only.

Notes: Dependent variable in Columns 1 and 2 is binary indicator for additional support needs; in Column 3 the dependent variable is a continuous development index (see Section III.C for details). Column 1 includes all children, and Columns 2 and 3 include the subset of children for whom the total development index is available. Regressions include control variables for age at testing (monthly, dummies), child’s gender, parents’ education (dummies), maternal country of origin (dummies), language spoken at home (dummies), and district‐level fixed effects (Kreise). Childcare availability is defined as the ratio of childcare slots divided by the number of children under three years at the district level. Robust standard errors in parentheses. Significance levels: ^*p < 0.10, ^**p < 0.05, ^***p < 0.01.

Source: Own calculations based on BEH data for for children born between March 2008 and December 2013, West Germany only.

Notes: Outcomes are measured 36 months after birth in Panels A–E. Cumulated employment is measured in days, cumulated labor income in euros. Controls in X_i are district‐level fixed effects (Kreise), age at birth dummies (<25, 25–30, 30–35, 30–40, >40), daily wage prior to birth dummies (<20, 20–40, 40–60, 60–80, 80–100, 100–120, >120), tertiary education (dummy), dummies for missing values in either. Robust standard errors in parentheses. Significance levels: ^*p < 0.10, ^**p < 0.05, ^***p < 0.01.

Source: Own calculations based on KiBS Waves 2 and 3 (interviews 2012–2015) for children born between March 2011 and December 2012, West Germany only.

Notes: Exclusive parental care is defined as the absence of informal care and care by a subsidized provider. Controls are maternal age at birth dummies (<25, 25–30, 30–35, 35–40, >40), survey wave dummies, federal state fixed effects, maternal tertiary education (dummy), children’s age in month dummies. Partner controls include a dummy for having a partner as well as partner’s education. Dummies for missing values in any control variable are included as well. Cluster robust (on mother’s level) standard errors in parentheses. Significance levels: ^*p < 0.10, ^**p < 0.05, ^***p < 0.01.

Source: Own calculations based on school entrance examinations data for children born in July or August between 2007 and 2012, Schleswig Holstein only.

Notes: Robust standard errors in parentheses. Significance levels: ^*p < 0.10, ^**p < 0.05, ^***p < 0.01.

Source: Own calculations based on BEH data for for children born between March 2008 and December 2013, East Germany without Thuringia only.

Notes: Outcomes are measured 36 months after birth. Cumulated employment is measured in days, cumulated labor income in euros. Controls in X_i are district fixed effects, age at birth dummies (<25, 25–30, 30–35, 30–40, >40), wage prior to birth dummies (<20, 20–40, 40–60, 60–80, 80–100, 100–120, >120), tertiary education (dummy), and dummies for missing values in either. Robust standard errors in parentheses. Significance levels: ^*p < 0.10, ^**p < 0.05, ^***p < 0.01.