The impact of early childhood education and care costs on female employment in the Barcelona metropolitan area

The public provision of early childhood education and care (ECEC) services is one of the main areas of development of welfare states in the last two decades. This expansion of formal care is based both on the potential benefits of the accumulation of human capital of the children, and on the employability of their mothers, by minimising the penalties of motherhood. Regarding this latter issue, mothers with less education - with fewer job opportunities and lower pay - are more dependent on substitute care resources. This paper quantifies the marginal costs relating to ECEC services compared to the potential salaries of the mothers involved. Given that these services are provided by local administrations, the analysis focuses on the municipalities of the Barcelona metropolitan area as a case study. Administrative data play a key role in the analysis. Results show how lack of flexibility in service design, the pricing system, and low wages have a inhibiting effect on the work activity of mothers with fewer potential resources.