Disadvantaging Single Parents? Effects of the Cash-for-Care Benefit for Single Mothers' Employment in Finland

Marika Jalovaara, University of Turku
Kathrin Morosow, Stockholm University

This study examines single mothers' labour market consequences when taking up the cash-for-care (CFC) benefit that is paid to parents whose young children are not in public childcare. Factors determining employment, such as education, number and age of children, and availability of child care, do affect single and partnered mothers likewise. However, the significance of these factors might differ; being the sole-breadwinner could incentivize employment for single mothers, while available social benefits might have an opposing effect. Considering that single parents face a number of disadvantages, e.g. fewer resources, this paper contributes by answering the question whether single parents are disadvantaged in the long run if CFC is used. Using high-quality Finnish register data during 1987–2009, sequence, cluster and panel regression analysis are applied to assess (1) if and to what extent single parents use CFC benefits, (2) the employment patterns of single mothers (vs. partnered), and (3) the long-term consequences of CFC for single mothers’ employment.

Following mothers for 15 years after first childbirth, and considering the timing of single motherhood, first results show that CFC is used extensively by all mothers – even by mothers that had their first child unpartnered. Sequence and cluster analysis revealed that this group of single mothers is quite heterogeneous: almost half of these women form a continuous partnership, while the other half stays unpartnered. About 60% of these mothers show stable employment trajectories, one third of which are continuously single. While 25% are characterized by long unemployment spells or unstable employment – all continuously unpartnered, about 15% display very long leave spells - all continuously partnered. Next steps include describing the patterns of single mother’s CFC take-up by timing of single motherhood, and panel regression to model long term consequences for single mother’s employment.

Presented in Session 64: Family Policies and Outcomes