Childcare Effects on Maternal Employment: Evidence from Chile

Using a randomized experiment, this study examines whether offering afterschool care for children aged between 6 and 13 has an impact on labor market outcomes for women in Chile. The results show that program participation increases employment by 5% and labor force participation by 7%, while the intervention also generates substantial childcare substitution. The results also suggest that the provision of afterschool care for older children triggers the use of free daycare for young (ineligible) children.