The rapid expansion of preschools in Indonesia between 2002 and 2014 gives the researchers data to test whether childcare services increase productivity of manufacturing plants by improving the allocation of talents and freeing up time for women to work. The results suggest that an additional preschool per 1,000 children increases total factor productivity by 11 percent for plants with an average fraction of female workers. This evidence gives an additional economic reason to improve childcare services. Read more
Blog » The Impact of Preschool Expansion on Firm Productivity
The Impact of Preschool Expansion on Firm Productivity
The rapid expansion of preschools in Indonesia between 2002 and 2014 gives the researchers data to test whether childcare services increase productivity of manufacturing plants by improving the allocation of talents and freeing up time for women to work. The results suggest that an additional preschool per 1,000 children increases total factor productivity by 11 percent for plants with an average fraction of female workers. This evidence gives an additional economic reason to improve childcare services. Read more