Code/Syntax: Home care allowance and labor market participation of immigrant and native-born mothers

Despite this gap, Germany introduced various forms of home care allowances in the last decade. Parallel to the extension of early child care and the inclu-sion of a legal claim for it, from 2013 to 2015, a nationwide home care allowance existed for parents who did not use public child care for children aged one or two years.

After 2015, home care allowances continued to exist in several German federal states. Some politicians strongly criticized this transfer for allegedly decreasing work incentives, particularly for moth-ers with lower labor market integration, such as immigrant mothers. Using federal state differ-entiated data obtained from the German Socio-Economic Panel (doi: 10.5684/soep.v34), we investigate the impacts of a home care allowance on the labor market participation of mothers.