Childcare expansion and mothers’ employment in post-socialist countries

Quasi-experimental evidence: The context matters

Quasi-experimental studies provide strong evidence of a causal effect of childcare availability on maternal labor supply. However, the results are highly dependent on context. A recent study that summarizes lessons from a comparison of a set of quasi-experimental studies for the US and several Western European countries suggests that the effectiveness of childcare expansion depends on several contextual factors. First, the scope for policy to effectively increase maternal labor supply depends on the existing level of maternal labor force participation; if it is high, the effect will be small. Second, the interaction of childcare expansion with other policy elements, such as child-related parental leave, also influences the effect. Finally, social norms about gender and maternal roles are also important determinants, in that more traditional and less egalitarian role models can discourage mothers’ labor force participation [3].

Empirical estimates of the effect of childcare availability cover mainly Western countries; however, the interpretation of their results provides some insight into how the effects may differ in post-socialist countries. Evidence from a range of countries supports the notion that policymakers should consider interdependencies when evaluating the potential effects of policies to support maternal employment by expanding childcare provision. A study for the US found no evidence of a significant effect from the introduction of free universal preschool for four-year-olds, since maternal employment was already fairly high for mothers of children of this age [4]. A very small effect was estimated for France, where a 50% average reduction in childcare costs led to only a one percentage point increase in the already high labor force participation of mothers [5]. A larger effect was found in Spain, where the introduction of universal full-time preschool led to a three percentage point increase in a much lower maternal labor force participation rate [6]. In Germany, where maternal employment rates were very low even though female education levels were high, the introduction of a legal claim to a place in kindergarten in 1996 led to an increase of six percentage points in maternal employment [7]. Since the labor force participation of mothers with children under three is very low in post-socialist countries, the findings for Spain and Germany suggest a large potential impact in post-socialist countries.

The study for Spain noted that in a context of very short legislated maternity leave and rigid labor market conditions, the introduction of universal full-time preschool was not enough in itself to spur a large increase in maternal employment despite the low level of maternal employment [6]. Childcare expansion may also be ineffective in increasing maternal labor supply if social norms are not supportive of maternal employment. Traditional views on gender roles contribute to the fact that in Spain many women permanently exit the labor force after giving birth, despite the increase in childcare availability [6]. In France, on the other hand, cultural norms are very supportive of mothers working, leading to a high maternal employment rate that was not greatly affected by additional childcare expansion [5]. Similar to public sentiment in Spain, people in post-socialist countries have fairly traditional views about maternal employment, with a strong preference that mothers of children under three care for them at home. There are also few options for flexible work schedules. Both of these factors are likely to limit the effectiveness of childcare expansion in post-socialist countries.

Evidence from the one quasi-experimental study that estimated the effect of childcare availability in Hungary, a post-socialist country, is in line with these findings. The study focused on mothers of children at age three, an age at which high-coverage public kindergarten becomes available, parental leave ends, and societal preferences regarding whether mothers should stay at home to take care of their children change sharply. Maternal labor force participation increases by 31 percentage points among mothers with children at this age, with 7.6 percentage points of the increase explained by the increased availability of subsidized childcare. As expected based on the very low maternal employment rate before children reach the age of three, the effect is high compared with the increase found in Western countries with already high labor force participation rates. At the same time, the result for Hungary highlights the importance of other contextual factors particular to most post-socialist countries—maternal leave policies and societal preferences—since childcare availability explains only a quarter of the overall rise in maternal activity when children reach the age of three [8].

Cross-country evidence on family policy measures

Much of the empirical evidence on the effects of an expansion in childcare on maternal employment comes from single country analyses that focus on the childcare effect. However, another strand of the literature focuses on testing the effect of several elements of family policy and cultural norms on maternal labor supply based on cross-country comparisons. These studies generally support the view that in addition to the availability of childcare (especially for children under three), the existence of well-paid maternal leave that is neither too short nor too long, flexible job opportunities, and cultural support for maternal employment lead to smaller differences in the employment participation and working hours of mothers compared with women without children [9]. Because mothers in post-socialist countries face constraints in several of these areas simultaneously, these results again suggest that the expansion of childcare alone may not be effective in increasing maternal labor supply to the levels seen in Western countries.

Low employment of mothers with young children

With the notable exceptions of Lithuania and Slovenia, low employment rates for mothers with children aged up to two years have persisted in most post-socialist Central and Eastern European countries, but with considerable variation among them. These differences cannot be explained by differences in childcare coverage, which is considerably lower than in Western European countries. For example, Poland has a fairly high rate of maternal employment despite the low childcare coverage for children in this age group, while Estonia has a low maternal employment rate despite its higher childcare coverage.

The evolution of maternal employment has taken a very different path in post-socialist countries than in Western countries, which have experienced a gradual increase in female and maternal employment over the last few decades. Under the socialist system, Central and Eastern European countries had very high levels of female employment and a declared commitment to women’s equality. When these countries transitioned to a market-based economy and experienced severe economic recession, female employment fell [11]. But while socialist countries had promoted maternal employment with generous family policies and an extensive childcare system, there was no concurrent shift in the distribution of household duties, mothers worked in lower-paying jobs, and employment was not their own choice but rather imposed on them by state policies. These factors resulted in what has been termed a socialist legacy of anti-feminism that still influences societies and policymaking in the region [12].

Low coverage of childcare institutions for children under the age of three

The low current levels of childcare coverage in post-socialist countries also reflect a very different trajectory than in Western countries. Public childcare was extensive during socialism, but transition led to a dismantling of the centralized system. Provision was moved to local governments, resulting in a decrease in funding and quality and to many closures, especially of institutions for children under the age of three [12]. A further important element of the socialist legacy concerns the institutional structure of the childcare system, especially in the Czech Republic, Hungary, Poland, and Slovakia. While kindergartens were considered educational institutions and overseen by the ministry of education, nursery schools were considered health care institutions and were overseen by the health ministry. This led to a very different atmosphere and quality in the two types of institutions: a general dislike of nursery schools, and a strong, persistent belief that care within the family is better than nursery schools for children under the age of three [10]. Because of these preferences and the emergence of a large share of the population not engaged in the labor force, childcare by grandparents became widespread in these countries. Childcare expansion may therefore only affect women in families with no grandparents available to help with childcare unless preferences can be changed to favor institutional childcare, even for children younger than three.

Very long or very short maternal leave

In addition to the extensive childcare system, most socialist countries had a generous system of child-related benefits aimed at supporting female employment. But following the transition, the emphasis shifted to moving childcare duties back to the family, specifically women [10]. The economic environment also influenced the path of reforms taken, leading to both common trends and to variations in family policies. Budgetary constraints led to a decline in cash benefits, though total spending on family policies as a ratio of national income remained fairly high. Recent austerity measures and concerns over low fertility rates have kept governments from making further cuts in order to keep women within the household, and some countries have even introduced reforms aimed at moving more women out of employment and into the domestic realm.

Maternity and parental leave available to mothers in post-socialist countries is generous compared to that available in the Western countries shown in Figure 2. Some post-socialist countries provide very long (up to age three or beyond) though relatively low-paying parental leave to all mothers. Research suggests that this long leave at low pay may result in mothers (especially those who are low-skilled) becoming detached from the labor market, allowing their skills to depreciate, as well as in increased statistical discrimination against mothers and other women, whom employers assume may have children in the future and whom they therefore judge to be less dependable, more costly employees [9]. At the other extreme, Poland does not offer parental leave at all, and maternity leave is means-tested and available only to relatively few mothers. When maternal leave is too short, it may constrain the ability of women to re-enter the workforce due to the lack of job protection after giving birth and may discourage mothers in higher-income households from returning to work [9].

Compared with countries that offer short or no maternal leave (such as Poland), countries that have long maternal leave with low pay (such as the Czech Republic and Hungary) have more flexibility to reform leave policies to promote mothers’ return to the labor market without unduly increasing the financial burden on the government. These countries have more fiscal space to restructure their leave policies without incurring further costs. Lithuania, Romania, and Slovenia already provide medium-length, well-paid leave that is similar to that provided in Western countries with the highest rates of maternal employment. This leave design balances the goal of job protection with incentives to return to work that encourage women to have children without sacrificing their careers as a result of long interruptions.

Another important aspect of the design of leave policies is how well they enable and encourage fathers to share in childcare. Among the Western countries in Figure 2, those that explicitly encourage a more even distribution of duties between mothers and fathers have the highest levels of maternal and female employment, though the gender gap in leave usage remains large even in countries with the highest levels of gender equality, such as the Scandinavian countries [13]. The post-socialist countries of Central and Eastern Europe offer very short, if any, leave for fathers. These policies reflect a carryover of attitudes from the socialist era. Although socialist governments were among the first to introduce parental leave, such leave was available only to mothers. Referred to as extended maternity leave, it was not indicative of a supportive attitude toward fathers’ involvement in childcare [10]. The post-socialist countries opened up parental leave to fathers only in response to EU pressure prior to their accession to the EU, but the current design and usage pattern of leave policies reflect a generally non-supportive attitude toward paternal leave within society and government.

Inflexible labor markets

The flexibility of the labor market affects maternal employment, though it is not directly related to family policies. In countries where long maternal absences from the labor market are the norm, part-time work may provide mothers with a means of strengthening their attachment to the labor market and keeping their skills up to date, while allowing for a more gradual separation from their child. The employment rate of mothers with young children is strongly correlated with the availability of part-time work opportunities. Figure 2 shows a large gap in the availability of part-time work opportunities between Western countries and the post-socialist countries of Central and Eastern European. While the proportion of women working in part-time jobs in the Western European countries ranges from 23% (France and Spain) to 61% (the Netherlands), in the Central and Eastern European countries it ranges from 3% (Bulgaria) to 12% (Poland). The administrative burden and tax disincentives to hiring part-time and temporary workers are high in the post-socialist countries, leading to inflexible labor markets. At the same time, childcare hours at nursery schools and kindergartens are also rigid and difficult to reconcile with full-time work, but this rigidity could be less of an impediment to mothers’ employment if part-time job opportunities were more readily available. Together, these factors constrain the employment of mothers of young children in many post-socialist countries [12].

Unsupportive societal views

Changing the responsiveness of mothers to policies to encourage maternal employment requires shaping public opinion to counteract a socialist legacy of anti-feminist sentiment and mistrust of institutional childcare for young children, while also ensuring that other policies are in harmony with the goal of increased maternal employment. That means aligning and supporting family policies to ease the rigidity in labor markets by encouraging more flexible work options. Responses to two questions related to gender roles on the Eurobarometer survey of public opinion in EU countries (“All in all, does family life suffer when the mother has a full-time job?”; and, “Overall, are men less competent than women in performing household tasks?”) suggest that people’s views are not much more gender biased in Central and Eastern European countries than in Western Europe and the US. At the high end of the spectrum of agreement with these questions, the percentages of people who agree are not much higher in Central and Eastern European countries than in Spain, while percentages in several post-socialist countries, for example, Estonia, are closer to those in the less traditional Western countries. As one study notes, despite a lack of support for feminism in theory, in practice people in Central and Eastern European countries are not much less supportive of gender equality in everyday life on average than are people in Western countries? [12].

Especially noteworthy, however, is that the legacy of socialist influence on negative attitudes toward maternal employment is particularly strong for mothers of young children. These still-entrenched views may limit the effectiveness of policies to expand childcare among this group of mothers. These views may also explain the absence of public protest against reforms emphasizing home care of young children, and why there has been little pressure on governments to adopt policies promoting the entry or re-entry of mothers into the labor market and greater gender equality [12]. The 2010 European Commission evaluation of progress toward the Barcelona targets also notes the importance of norms related to parenthood, institutionalized childcare, and parental preferences at the country level, stating that it is “important not only to acknowledge these longstanding cultural and normative values about parenthood and childcare, but to also attempt to tackle these perceptions through more public awareness” [1].