Having affordable access to childcare is linked to higher employment rates for mothers of pre-school children. However, far less is known about how the quality of available childcare affects mothers’ employment. We use childcare center ratings from the Australian National Quality Framework to examine how the availability and quality of childcare influences mothers’ employment decisions.
Increased availability of childcare centers with higher quality ratings leads to a significant increase in the use of childcare and labor force participation, especially among high-income, educated, and first-time mothers.
These findings suggest that childcare policy should go beyond affordability and focus on expanding high-quality services. Transparent quality rating systems can help parents make informed choices.