CEPEO Seminar Series - Anna Raute

The literature has studied the willingness to pay for family-friendly amenities, but less is known about the supply side and the incentives for firms to provide these amenities. There are two main incentives for firms to offer family-friendly workplace policies. First, such amenities may increase employee retention or reduce the duration of labor market breaks after the arrival of children. Second, if some workers are willing to pay for these amenities, firms can offer them to attract new workers. Our study utilizes German matched employer-employee data combined with detailed survey panel data on firm provision of childcare to examine these motives. We find that firm-provided childcare enhances retention and shortens labor market breaks for mothers, especially for high-wage mothers. It also contributes to employment growth, disproportionately driven by firms attracting female talent.