PT  - JOURNAL ARTICLE
AU  - Collischon, Matthias
AU  - Kuehnle, Daniel
AU  - Oberfichtner, Michael
TI  - Who Benefits from Cash‐for‐Care?
AID  - 10.3368/jhr.0720-11051R1
DP  - 2024 Jul 01
TA  - Journal of Human Resources
PG  - 1011--1051
VI  - 59
IP  - 4
4099  - http://jhr.uwpress.org/content/59/4/1011.short
4100  - http://jhr.uwpress.org/content/59/4/1011.full
AB  - We provide comprehensive evidence on Germany’s home care subsidy for one‐ and two‐year‐old children. In West Germany, take‐up was 60 percent, and the subsidy reduced mothers’ probability to work within three years after childbirth by 1.4 percentage points and increased exclusive parental care by 6.5 percentage points. The subsidy improved children’s development at age six, with the exception of children who do not speak German at home. In East Germany, 30 percent of families used the subsidy, neither affecting maternal employment nor exclusive parental care. As an income transfer, the subsidy did not benefit families with the least economic resources most.