Working Paper: CEPR ID: DP14882
Authors: Nicola Fuchs-Schundeln; Moritz Kuhn; Michele Tertilt
Abstract: The COVID19 crisis has hit labor markets. School and child-care closures have put families with children in challenging situations. We look at Germany and quantify the macroeconomic importance of working parents. We document that 26 percent of the German workforce have children aged 14 or younger and estimate that 11 percent of workers and 8 percent of all working hours are affected if schools anddaycare centers remain closed. In most European countries, the share of affected working hours is even higher. Policies to restart the economy have to accommodate the concerns of these families.
Keywords: COVID-19; Labor Market; Children; Childcare; Parents; Workforce
JEL Codes: E24; E32; J22
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Closure of schools and childcare facilities (I21) | Labor supply reduction (J89) |
| Closure of schools and childcare facilities (I21) | Total hours reduction (J22) |
| Closure of schools and childcare facilities (I21) | Hours reduction from couple households (J12) |
| Closure of schools and childcare facilities (I21) | Hours reduction from single parents (J22) |
| Closure of schools and childcare facilities (I21) | Labor supply effects in female-dominated occupations (J21) |
| Childcare obligations (J13) | Labor supply reduction (J89) |
| Childcare obligations (J13) | Hours lost compared to short-time work (J22) |