Uzbekistan's Childcare Reform Spurs 12% Rise in Women's Workforce Participation

Uzbekistan’s childcare expansion policy (2018–2022) increased female labor force participation by 12%, driven by economic pressures and aspirations for children’s education. Despite the gains, tight labor markets limit job availability, underscoring the need for complementary job creation initiatives.

The expansion of public childcare services in Uzbekistan from 2018 to 2022 has emerged as a pivotal policy driving female labor force participation. Spearheaded by researchers from the World Bank and Central European University, the study highlights the transformative impact of this initiative, which increased preschool capacity by more than threefold. The research, based on data from the Listening to Citizens of Uzbekistan (L2CU) survey and the Household Budget Survey (HBS), provides critical insights into the unique socio-economic dynamics of a country where multigenerational households and traditional caregiving roles dominate. The findings challenge long-standing assumptions about barriers to women’s employment and shed light on actionable strategies for other developing nations.

Childcare Costs and Economic Pressure: A Catalyst for Change

In a country where patriarchal norms have traditionally confined many women to household roles, the childcare expansion policy proved transformative. Prior to the initiative, only 25% of children aged three to six were enrolled in preschool, but by 2022, this figure had climbed to 63%. Despite the impressive gains in accessibility, preschool services remain expensive, with fees consuming 25% to 200% of a woman’s average monthly earnings. This financial burden emerged as a critical factor pushing women into the workforce. The study revealed that economic pressures, coupled with aspirations to provide children with better educational opportunities, played a more significant role in driving labor force participation than time availability alone.

Targeted Implementation Spurs Workforce Entry

The policy’s implementation varied across districts, providing a natural experiment to evaluate its effects. Regions with substantial increases in childcare coverage experienced marked growth in women joining the labor force, particularly among low- and middle-income households. In contrast, wealthier households or those with limited caregiving support saw minimal changes, highlighting the importance of economic necessity in influencing decisions to work. Families that prioritized their children’s education were notably more responsive to the policy, further demonstrating how long-term aspirations shaped women’s labor market decisions.

While the policy succeeded in increasing labor force participation, actual employment rates lagged behind. Many women faced challenges in securing jobs due to tight labor market conditions. This discrepancy underscores that while childcare access is a critical enabler, it must be accompanied by job creation initiatives to fully translate participation into employment gains.

Shifting Household Dynamics and Caregiving Roles

Uzbekistan’s multigenerational households, characterized by a high prevalence of informal caregiving by grandmothers or other relatives, provide a unique context for analyzing childcare policy impacts. Despite this support system, the policy led to significant labor market engagement, debunking the assumption that time constraints are the primary barrier for women. Instead, financial pressures to cover childcare costs and aspirations for better educational outcomes were key motivators. The study also found that households with multiple working-age women responded more strongly to the policy, as additional caregivers offered flexibility for women to join the workforce.

The analysis highlights a critical shift in how childcare policy effects are viewed. While studies in developed countries often emphasize time availability, this research reveals the primacy of economic factors in driving women’s workforce participation in lower-middle-income settings like Uzbekistan.

From Policy to Practice: Lessons for Developing Economies

The study’s findings provide valuable lessons for policymakers in developing countries seeking to enhance gender equity in labor markets. By isolating the causal effects of Uzbekistan’s childcare expansion, researchers demonstrated that public childcare services can be powerful tools for economic empowerment. However, the results also emphasize that childcare reforms alone are insufficient. Without addressing the structural challenges of tight labor markets and economic inequality, the full potential of such policies cannot be realized.

The study revealed a 2.4 percentage point increase in labor force participation among women in districts where childcare coverage increased above the median. While seemingly modest, this represents a 12% rise from the country’s low baseline participation rate of 20%. The impact was particularly pronounced among economically disadvantaged households and those valuing education. Women from low- and middle-income families were more likely to join the workforce, though job scarcity limited their ability to secure employment.

The research also underlines the importance of complementing childcare expansion with broader socio-economic initiatives. These include creating job opportunities, providing skills training, and reducing the financial burden of childcare services for low-income families. Together, such measures can ensure that childcare reforms achieve their intended outcomes and contribute to inclusive economic growth.

A Blueprint for Inclusive Growth

Uzbekistan’s childcare expansion policy offers a blueprint for countries aiming to bridge gender gaps in labor market participation. By focusing on the interplay of economic pressures, household dynamics, and educational aspirations, the study provides a nuanced understanding of the factors that influence women’s employment decisions. These findings underscore the importance of designing policies that not only expand access to childcare but also address the underlying barriers that prevent women from securing meaningful employment.

As countries around the world grapple with gender disparities in the workforce, Uzbekistan’s experience demonstrates the transformative potential of well-targeted childcare policies. By empowering women to enter the labor market, these policies contribute not only to gender equity but also to broader economic resilience and development.

The research stands as a testament to the impact of evidence-based policymaking. It reinforces the need for governments to consider local contexts, prioritize economic inclusivity, and support long-term aspirations for education. By doing so, they can unlock the full potential of their labor force, driving progress toward a more equitable and prosperous future.