G²LM|LIC - Returns to Childcare and Capital: Experimental Evidence from Uganda

The study "Returns to Childcare and Capital: Experimental Evidence from Uganda" is designed to investigate how access to childcare and capital impacts the labor supply and business outcomes of women in Uganda, particularly those managing microenterprises. The central aim is to understand whether providing childcare can alleviate the constraints faced by female entrepreneurs due to familial obligations, thus enhancing their business productivity and overall household well-being. Study Design and Methodology: The project involved a randomized controlled trial (RCT) conducted between 2018 and 2023, surveying 1,496 households across urban and semi-urban areas in Uganda. All participating households had a three-to-five-year-old child and a female primary caregiver at the baseline. These households were randomly assigned to one of four groups: T1: Provider with subsidized childcare (family support intervention). T2: Given a cash grant (business support intervention). T3: Received both subsidized childcare and a cash grant. C: Control group, which received neither intervention. The study collected data through multiple survey rounds, primarily conducted face-to-face, with two rounds completed via phone during COVID-19 lockdowns. The 13 survey rounds were designed to gather detailed information from female caregivers (household surveys) and their children (child surveys). The data is organized into separate files for each survey round, ensuring anonymity and consistency in variable naming. Findings and Objectives: The study aims to answer three key research questions: Does providing access to childcare increase women’s labor supply and stimulate the development of female-owned businesses? Does this access improve the effectiveness of business development interventions like cash grants? Does it enhance child development outcomes? By comparing the outcomes across the different groups, the researchers can identify the causal effects of childcare support, business grants, and their combination on women’s economic participation and household welfare. The findings are expected to provide insights into how integrating family support with business support can lead to better economic outcomes for women, particularly in low-income countries. Key Insights: The childcare subsidy was found to significantly increase labor supply and earnings among single mothers, while also positively impacting household income and child development. Cash grants improved labor supply and income for mothers across different household structures, underscoring the importance of addressing credit constraints for business growth. The study also explores potential complementarities between childcare and business support, offering a comprehensive view of how these interventions can work together to empower women economically. This research contributes to the broader understanding of microenterprise development, especially the role of domestic responsibilities in shaping economic opportunities for women in developing countries.