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Childcare Responsibilities and Parental Labor Market Outcomes During the COVID-19 Pandemic

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Abstract

A substantial fraction of k-12 schools and childcare facilities in the United States closed their in-person operations during the COVID-19 pandemic. These closures may have altered the labor supply decisions of parents of affected children due to a need to be at home and take care of their children during the school day. In this paper, we examine the impact of school and childcare facility closures on parental labor market outcomes. We test whether COVID-19 facilities closures have a disproportionate impact on parents of children under 18 years old. Our results show that both women’s and men’s work lives were affected by school closures, with both groups seeing a reduction in the likelihood of working, work hours and the likelihood of working full-time. We also find that closures had a corresponding negative effect on the earnings of fathers of children under 18 years old, but not on mothers. These effects are concentrated among parents without a college degree, parents working in occupations that do not lend themselves to telework, and parents without other family members living at home, suggesting that such individuals had a more difficult time adjusting their work lives to school and childcare facility closures.

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Data Availability

The data that support the findings of this study are available at: https://doi.org/10.3886/E198601V1.

Notes

  1. Our two papers were developed in parallel. First drafts of each paper were posted online in the same week in January 2022 (unbeknownst to either set of authors beforehand).

  2. Our definition is based on the definition of “usual full-time work” in the CPS published by the Bureau of Labor Statistics: https://www.bls.gov/cps/definitions.htm#fullparttime.

  3. For those with zero earnings, we assign a value of $1 before we transform them to logarithmic values for our estimations. Alternatively, we transform the data using the inverse hyperbolic sine of real earnings and find very similar results (available upon request).

  4. Only civilians age 15 years old and over employed as wage/salary workers (i.e., excluding self-employed individuals) in an outgoing rotation group of CPS are asked this question. In our sample, we assign zero earnings to individuals that are in an outgoing rotation group of CPS and are classified as unpaid family workers, unemployed or not in the labor force.

  5. The question about COVID-induced telework first appeared in the CPS in May 2020. For months prior to that, we code the variable as zero for all individuals.

  6. Given the strong correlation (0.89) between school and childcare facility closures, primarily because childcare facilities schedules often align with local school calendars, we cannot separate childcare facility closures from school closures in our regressions due to multicollinearity concerns. Thus, in order to provide a more complete understanding of the impact of the closures on the parents of pre-kindergarten and school-aged children, we use a combined measure of school and childcare facility closures in our analysis.

  7. Based on our calculations using Safegraph data, foot traffic declines in June and July by about 70% relative to peak school visits in 2019.

  8. https://about.burbio.com/school-opening-tracker.

  9. https://github.com/CSSEGISandData/COVID-19/tree/master/csse_covid_19_data/csse_covid_19_time_series.

  10. https://github.com/KFFData/COVID-19-Data/tree/kff_master/State%20Policy%20Actions/State%20Social%20Distancing%20Actions.

  11. The correlation between the number of own children residing in the household and presence of child age < 18 is 0.7535. Note that the results do not significantly change if we drop the number of own children residing in the household from the controls.

  12. We used 4-digit industry and occupation codes as reported in the CPS. These include a category for no occupation given. HSS do not include industry and occupation controls in their analysis, but they do exclude workers in the k-12 education sector in their main analysis.

  13. Due to the limitations of the CPS, which only provides the ages of the eldest and youngest children in the household, we focus on using the age of the eldest child in our analysis. For robustness checks, we also included results from an alternative specification that uses the age of the youngest child in the Appendix.

  14. Results using the age of youngest child are presented in Appendix Table 12 (female) and 13 (males).

  15. Additional results from these specifications are available upon request.

  16. According to Albanesi and Kim (2021b), flexible occupations are those that enable their workers to perform their tasks from a remote location, while inflexible occupations involve outdoor tasks or necessitate the use of on-site equipment. Meanwhile, the distinction between high-contact and low-contact occupations is determined by the physical proximity of workers to either customers or colleagues while performing work duties.

  17. This is also consistent with the findings for self-employed individuals presented in Appendix Table 14. We find that school and childcare facility closures had no statistically significant impact on the employment outcomes of self-employed parents. This lack of impact is partly attributed to the inherent flexibility of self-employment, which often includes control over work schedules, hours, and location. Similarly, this flexibility extends to individuals in occupations with a high potential for teleworking, which also mitigates the impact of the closures.

  18. Promoting the ability of the essential workforce to continue working despite closure and social distancing orders were critical to public health and safety, as well as to maintaining economic stability and national security (National Conference of State Legislatures 2021).

  19. See Albanesi and Kim (2021b); Shore (2010) for evidence on risk-sharing in the labor-market behavior of married couples.

  20. The CPS has a short panel component, where individuals are interviewed for 4 months, are out of the survey for 8 months, and then interviewed for another 4 months. However, this is likely insufficient to tackle the question of changes in occupation at the individual level.

  21. Recall that we do not use June and July in our analysis as most U.S. schools are on summer break during those months. However, including summer months in the sample gives similar estimates as the baseline results in Table 2. Results are shown in Appendix Table 17.

  22. Recall that Burbio does not have data on childcare facility closures.

  23. 42% of individuals with at least college degree are in occupations with telework potential, as opposed to only 13% of individuals without college degree.

  24. 24.55 million women and 26.25 million men with children less than 18 years old were employed in 2019 (see BLS Table 5: https://www.bls.gov/news.release/archives/famee_04212021.pdf). We multiply our coefficients in Table 2 for the reduction in individuals at work due to school closures (1.8 percentage points for women, and 1.0 percentage points for men) by these figures as well as the average percentage of closed schools/childcare facilities in our data in 2020-21 (0.38) to arrive at the estimated reductions of 168,000 women and 100,000 men working because of closures. To estimate the reduction in work hours, we do the same thing but use our interaction coefficients in the work hours regressions (0.9 hours for women, and 1.8 hours for men; also shown in Table 2) to arrive at a loss of 8 million hours for women and 18 million hours for men due to closures. For brevity, the values reflected in the text are rounded.

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Appendix

Appendix

Fig. 1
figure 1

Average percentage of school and childcare facility closures in CPS sample with county identifiers according to Parolin and Lee (2021) school closure database and Lee and Parolin (2021) childcare facility closure database, April 2020 & 2021 and September 2020 & 2021

Table 10 Summary statistics of individual characteristics used as control variables
Table 11 OLS regressions of labor market outcomes on combined school and childcare facility closures, January 2020-December 2021, excluding self-employed
Table 12 OLS regressions of labor market outcomes on combined school and childcare facility closures, January 2020-December 2021, female, by youngest child’s age
Table 13 OLS regressions of labor market outcomes on combined school and childcare facility closures, January 2020-December 2021, male, by youngest child’s age
Table 14 OLS regressions of labor market outcomes on combined school and childcare facility closures, self-employed
Table 15 OLS regressions of labor market outcomes on combined school and childcare facility closures, January 2020-December 2021, with leads and lags of closures
Table 16 OLS regressions of labor market outcomes on combined school and childcare facility closures, with seasonal dummies
Table 17 OLS regressions of labor market outcomes on combined school and childcare facility closures, with summer months
Table 18 OLS regressions of labor market outcomes on combined school and childcare facility closures, using 75% closure cutoff
Table 19 OLS regressions of labor market outcomes on school closures, using Burbio data, female
Table 20 OLS regressions of labor market outcomes on school closures, using Burbio data, male

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Garcia, K.S.D., Cowan, B.W. Childcare Responsibilities and Parental Labor Market Outcomes During the COVID-19 Pandemic. J Labor Res (2024). https://doi.org/10.1007/s12122-024-09355-y

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