RT Journal Article
SR Electronic
T1 Who Benefits from Cash‐for‐Care?
JF Journal of Human Resources
FD University of Wisconsin Press
SP 1011
OP 1051
DO 10.3368/jhr.0720-11051R1
VO 59
IS 4
A1 Collischon, Matthias
A1 Kuehnle, Daniel
A1 Oberfichtner, Michael
YR 2024
UL http://jhr.uwpress.org/content/59/4/1011.abstract
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.