Publication: Preschool Availability and Female Labor Force Participation: Evidence from Indonesia
Loading...
Files in English
927 downloads
Published
2019-06
ISSN
Date
2019-06-26
Editor(s)
Abstract
At 50.9 percent, female labor force participation in Indonesia is far below the regional average of 60.8 percent. Is it being hindered by a lack of affordable childcare services in the country? This paper exploits the joint variations in preschool age eligibility and access to preschool across regions and over years in a difference-in-difference-in-differences framework. With a longitudinal survey that tracks individuals for an average of 22 years, a panel of mothers was constructed to estimate the elasticity of maternal employment to preschool access. The analysis finds that an additional public preschool per 1,000 children increases the work participation of mothers of preschool age eligible children by 11-16 percent from the baseline mean. Private preschools do not increase work participation at the extensive margin, but they increase the likelihood of holding a second job. The availability of preschools induces mothers to informal sector occupations that do not require full-time commitments.
Link to Data Set
Citation
“Halim, Daniel; Johnson, Hillary C.; Perova, Elizaveta. 2019. Preschool Availability and Female Labor Force Participation: Evidence from Indonesia. Policy Research Working Paper;No. 8915. © World Bank. http://hdl.handle.net/10986/31980 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Publication Climate and Social Sustainability in Fragility, Conflict, and Violence Contexts(Washington, DC: World Bank, 2026-01-07)Climate change is widely recognized as a driver of violent conflict, but its broader social effects remain less understood. Ignoring these dimensions risks a vicious cycle where climate policies might undermine socially just adaptation. Evidence is still limited on how climate shocks influence political participation, trust, or migration. This paper helps fill that gap by examining links between climate change, conflict, and social sustainability, with a focus on inclusion, resilience, cohesion, and legitimacy. Using secondary data from 2019–24, the study applies simple correlation-based methods to test three hypotheses on the nature, severity, and composition of these associations. The analysis combines multiple climate impact measures, new conflict classifications, recent social sustainability frameworks, and controls for population and geography. The results reveal strong correlations—not causation—between climate events and contexts of fragility, conflict, and violence. Climate impacts are most pronounced in both national and subnational conflict settings. The study also finds robust links between fragility, conflict, and violence and low levels of social sustainability, reflecting its role as both a driver and consequence of conflict. Some dimensions—such as violent events and insecurity—appear weaker in areas most affected by climate shocks. Two of the hypotheses are supported, and one remains inconclusive.Publication The Macroeconomic Implications of Climate Change Impacts and Adaptation Options(Washington, DC: World Bank, 2025-05-29)Estimating the macroeconomic implications of climate change impacts and adaptation options is a topic of intense research. This paper presents a framework in the World Bank's macrostructural model to assess climate-related damages. This approach has been used in many Country Climate and Development Reports, a World Bank diagnostic that identifies priorities to ensure continued development in spite of climate change and climate policy objectives. The methodology captures a set of impact channels through which climate change affects the economy by (1) connecting a set of biophysical models to the macroeconomic model and (2) exploring a set of development and climate scenarios. The paper summarizes the results for five countries, highlighting the sources and magnitudes of their vulnerability --- with estimated gross domestic product losses in 2050 exceeding 10 percent of gross domestic product in some countries and scenarios, although only a small set of impact channels is included. The paper also presents estimates of the macroeconomic gains from sector-level adaptation interventions, considering their upfront costs and avoided climate impacts and finding significant net gross domestic product gains from adaptation opportunities identified in the Country Climate and Development Reports. Finally, the paper discusses the limits of current modeling approaches, and their complementarity with empirical approaches based on historical data series. The integrated modeling approach proposed in this paper can inform policymakers as they make proactive decisions on climate change adaptation and resilience.Publication Institutional Capacity for Policy Implementation: An Analytical Framework(Washington, DC: World Bank, 2026-01-07)State capacity is an important prerequisite for policy implementation, yet at the country level it is difficult to measure, assess, and reform. This paper proposes a focus on institutional capacity: the ability of public institutions to implement the specific policy mandates for which they are responsible. Based on a review of existing literature, the paper defines the different dimensions that compose institutional capacity and groups them into two cross-cutting categories: organizational dimensions (personnel, financial resources, information systems, and management practices) and governance dimensions (transparency, independence, and accountability). The paper proposes measures for organizational and governance dimensions using existing data, shows intra-institutional variation of these measures within countries, and discusses how new data could be collected for better measurement of these concepts. Finally, the paper illustrates how the framework can be used to diagnose the sources of common problems related to weak policy implementation.Publication South Africa’s Fragmented Cities: The Unequal Burden of Labor Market Frictions(Washington, DC: World Bank, 2026-01-08)Using high-resolution administrative, census, and satellite data, this paper shows that South African cities are characterized by spatial mismatches between where people live and where jobs are located, relative to 20 global peers. Areas within 5 kilometers of commercial centers have 9,300 fewer residents per square kilometer than expected, which is 60 percent below the global median. Poor, dense neighborhoods are most affected. In Johannesburg, a 10-percentile increase in distance from the nearest business hub corresponds to a 3.7-percentile drop in asset wealth (a proxy of household wellbeing) and 4.9-percentile drop in employment. In Cape Town, the declines are 4.0 and 3.7 percentiles, respectively. Employment is 87 percent lower in the poorest decile than the richest in Johannesburg and 61 percent lower in Cape Town. These findings suggest that South Africa’s spatial organization of people and economic activity constrains agglomeration and reinforces inequality. This methodology provides a scalable and standardized data-driven framework to analyze spatial accessibility and agglomeration frictions in complex, data-constrained urban systems.Publication Investment in Emerging and Developing Economies(Washington, DC: World Bank, 2026-01-07)The world faces a pressing challenge to meet key development objectives amid slowing growth and rising macroeconomic and geopolitical risks. With the number of job seekers rising rapidly, infrastructure shortfalls continuing to be large, and climate costs mounting, the case for a significant investment push has never been stronger. Yet the capacity to respond in many emerging markets and developing economies has eroded. Since the global financial crisis, investment growth has slowed to about half its pace in the 2000s, with both public and private investment weakening. Foreign direct investment inflows—a critical source of capital, technology, and managerial know-how—have also fallen sharply and become increasingly concentrated, leaving low-income countries with only a marginal share. The risks of further retrenchment are significant, as trade tensions, policy uncertainty, and elevated debt levels continue to weigh on investment. Reigniting momentum will require ambitious domestic reforms to strengthen institutions, rebuild macro-fiscal stability, and deepen trade and investment integration—the foundations of a supportive business climate. At the same time, international cooperation is indispensable. A renewed commitment to a predictable system of cross-border trade and investment flows, combined with scaled-up financial support and sustained technical assistance, is essential to help emerging markets and developing economies—especially low-income countries and economies in fragile and conflict situations—bridge financing gaps and implement the domestic reforms needed to restore investment as an engine of growth, jobs, and development.
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Preschool Availability and Female Labor Force Participation(World Bank, Washington, DC, 2017-10)Female labor force participation (FLFP) in Indonesia lags behind other countries in the region and has remained more or less unchanged since 1990. Descriptive evidence by the same authors points to unmet childcare needs as one constraint on FLFP. In this paper, we provide the first estimates of the impact of childcare availability on FLFP in Indonesia. Our findings suggest that access to public preschools leads to higher employment of mothers of age-eligible children, but access to private preschool does not. Specifically, an additional public preschool per 1,000 children raises employment of mothers of age-eligible children by 6.9 percentage points. This represents a 13.3 percent improvement from the average work participation at 52 percent.Publication Preschool Availability and Women’s Employment(The University of Chicago Press, 2021-04)While a large body of literature has documented positive impacts of institutional childcare on maternal labor supply, thinner evidence is available on whether childcare can also nudge women into better jobs in developing countries. We evaluate the impact of public preschool expansion in Indonesia on women’s labor supply and characteristics linked to the quality of their employment, including employment types, earnings, and hours. We rely on a triple difference approach exploiting variations in preschool availability over time and across districts, as well as preschool-age-eligibility cutoffs, in a panel dataset spanning over 20 years. We find strong positive impacts on employment—an additional public preschool per 1,000 children in the district increases women’s work participation by 9.1 percent. However, it is primarily driven by an increase in unpaid family work, typically in household farms or businesses. We do not find impacts on earnings or hours of work. These findings are likely explained by the modality of preschools in Indonesia: operating for only 3 hours per day, they are unlikely to enable women to secure a paid job outside the home with longer time commitments.Publication Does Access to Preschool Increase Women’s Employment?(Washington, DC: World Bank, 2018-07)Female labor force participation (FLFP) in Indonesia lags behind other countries in the region. Building on previous work that shows that unmet childcare needs are associated with low FLFP in Indonesia, here, we look at the impact of childcare availability on FLFP. The findings suggest that an additional public preschool per 1,000 children raises the employment of mothers of age-eligible children by 13 percent.Publication Could Childcare Services Improve Women’s Labor Market Outcomes in Indonesia?(World Bank, Washington, DC, 2017-03)In this brief, the authors explore whether lack of access to childcare is a constraint to female labor force participation (LFP) in Indonesia, a country where female LFP lags far below the regional average. Using household and labor force survey data, we find that low female LFP is linked to unsatisfied childcare needs - after childbirth, lack of access to informal childcare is associated with a longer absence from the workforce for women and a switch into less lucrative occupations or unpaid family work.Publication Childcare and Women’s Labor Market Outcomes in Lower-and Middle-Income Countries(World Bank, Washington, DC, 2022-07)Twenty-two studies from lower- and middle-income countries rigorously tested if an increase in access to childcare improved mothers’ labor force participation or earnings. All but one study found at least some positive impact on mothers’ labor force participation and related outcomes resulting from access to care, an increase in care hours, or a reduction in the cost of care. The results of this review are encouraging; childcare can help improve female labor market outcomes in low- and middle-income countries.
Users also downloaded
Showing related downloaded files
Publication Economy Profile of United States(World Bank, Washington, DC, 2017-11-01)Doing Business 2018 is the 15th in a series of annual reports investigating the regulations that enhance business activity and those that constrain it. This economy profile presents the Doing Business indicators for United States. Doing Business presents quantitative indicators on business regulation and the protection of property rights that can be compared across 190 economies; for 2018 United States ranks 6. Doing Business measures aspects of regulation affecting 11 areas of the life of a business. Ten of these areas are included in this year’s ranking on the ease of doing business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation, which is not included in this year’s ranking. Data in Doing Business 2018 are current as of June 1, 2017. The indicators are used to analyze economic outcomes and identify what reforms of business regulation have worked, where and why.Publication Beyond Unicorns(Washington, DC: World Bank, 2021-07-28)Similar to many other countries around the world, the COVID-19 (coronavirus) pandemic has hit Indonesia hard. Latest estimates suggest that about 5.1 million people—equivalent to 2.4 percent of the working-age population—have lost their jobs, while an additional 24 million have had to work reduced hours due to the pandemic. As many as 50 percent of workers have experienced a reduction in earnings. The impact on living standards has been devastating, with more than 2.2 million Indonesians estimated to have been pushed into COVID-19-induced poverty in 2020. One unexpected silver lining from the crisis, however, has been the turbo-charged adoption of digital technologies. Businesses, both large and small, have flocked to digital technologies to try to ensure the continuity of their operations. School closures have forced students and teachers to adapt and explore digitally enabled remote learning options, including the adoption of a variety of EdTech solutions. HealthTech apps enabling remote consultations and the delivery of medicine have seen unprecedented growth in adoption rates. Confined at home due to mobility restrictions, Indonesians have switched to the internet for their entertainment and social needs, driving sharp growth in the usage of digital media (music and video streaming) and communications applications. With this pandemic-induced flight to digital expected to be permanent to a large extent, there is excitement about an even greater acceleration in what was already the fastest growing digital economy in Southeast Asia. But at the same time questions have also emerged about the possibility of the differential access to and adoption of digital technologies compounding existing inequalities. For a country that considers achieving balanced development one of its key priorities, this is an important new challenge.Publication Economy Profile of Cambodia(World Bank, Washington, DC, 2017-11-01)Doing Business 2018 is the 15th in a series of annual reports investigating the regulations that enhance business activity and those that constrain it. This economy profile presents the Doing Business indicators for Cambodia. Doing Business presents quantitative indicators on business regulation and the protection of property rights that can be compared across 190 economies; for 2018 Cambodia ranks 135. Doing Business measures aspects of regulation affecting 11 areas of the life of a business. Ten of these areas are included in this year’s ranking on the ease of doing business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation, which is not included in this year’s ranking. Data in Doing Business 2018 are current as of June 1, 2017. The indicators are used to analyze economic outcomes and identify what reforms of business regulation have worked, where and why.Publication Exploiting Synergies between Rooftop Solar PV and Energy Efficiency Investments in the Built Environment(World Bank, Washington, DC, 2017-12)The synergies between rooftop solar PV (RPV) and energy efficiency (EE) investments in the built environment include lower specific transaction costs, optimized RPV systems, shorter project payback periods (compared to RPV-only projects), and, for EE, enhanced project visibility. These synergies improve the likelihood of project implementation, which in turn helps to reduce peak demand, increase environmental benefits, improve energy security, and lower energy bills. Because the methods of financing and implementing RPV and EE in the built environment are often similar, it is wise to consider including an EE component when investing in an RPV project, and vice versa.Publication Vietnam(World Bank, Hanoi, 2020-05-01)Following from Vietnam’s ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in late 2018 and its effectiveness from January 2019, and the European Parliament’s recent approval of the European Union-Vietnam Free Trade Agreement (EVFTA) and its subsequent planned ratification by the National Assembly in May 2020, Vietnam has further demonstrated its determination to be a modern, competitive, open economy. As the COVID-19 (Coronavirus) crisis has clearly shown, diversified markets and supply chains will be key in the future global context to managing the risk of disruptions in trade and in supply chains due to changing trade relationships, climate change, natural disasters, and disease outbreaks. In those regards, Vietnam is in a stronger position than most countries in the region. The benefits of globalization are increasingly being debated and questioned. However, in the case of Vietnam, the benefits have been clear in terms of high and consistent economic growth and a large reduction in poverty levels. As Vietnam moves to ratify and implement a new generation of free trade agreements (FTAs), such as the CPTPP and EVFTA, it is important to clearly demonstrate, in a transparent manner, the economic gains and distributional impacts (such as sectoral and poverty) from joining these FTAs. In the meantime, it is crucial to highlight the legal gaps that must be addressed to ensure that national laws and regulations are in compliance with Vietnam’s obligations under these FTAs. Readiness to implement this new generation of FTAs at both the national and subnational level is important to ensure that the country maximizes the full economic benefits in terms of trade and investment. This report explores the issues of globalization and the integration of Vietnam into the global economy, particularly through implementation of the EVFTA.