Bridging gaps: how investment in public childcare affects women’s employment in Italy and Spain

This paper aims to establish whether, and to what extent, an increase in the public provision of early childhood education and care services (ECEC) has had a positive effect on women’s participation in the labour market in Italy and Spain. It does so by compiling panel data using microdata from the European Labour Force Survey (2006–2018), together with secondary sources of information on public ECEC investment made in the two countries. After controlling for unit heterogeneity and reverse causality, the estimated results indicate a positive correlation with the employment rates of women with children and the number of hours worked, in particular for those without a degree, thus indicating the need to address unequal access to publicly-provided ECEC services.