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연구정보
[경제] Economic Gains from Investing in Childcare : The Case of Indonesia
인도네시아 국외연구자료 연구보고서 - World Bank 발간일 : 2023-01-23 등록일 : 2023-01-29 원문링크
Investments that unlock women’s employment and support human capital attainment can bring additional growth gains to Indonesia. Current rates of female labor force participation in Indonesia are relatively low by regional standards and have remained largely stagnant for two decades. Indonesia’s uneven childcare provision for early years misses an opportunity to bring a double dividend of growth through higher levels of female labor force participation, as well as boosting long term human capital. This policy note estimates the impacts of increased public expenditure on childcare services to the Indonesian economy. Model simulations suggest that increasing government expenditure on childcare to between 0.1 and 0.5 percent of gross domestic product (GDP) can increase GDP growth by as much as 0.7 percentage points above baseline scenarios. The simulations see increased women’s employment, with female labor force participation projected to reach East Asian averages of 58 percent, which is a 25 percent increase. The model results show that welfare gains from the increased public expenditure would benefit all income groups; however, the impacts will be largest for the lower-income groups in the country. Even if the additional expenditure were estimated to be budget neutral, the model continued to find the policy intervention to positively impact growth and to be overall welfare enhancing and progressive. To achieve these objectives, the government can consider: (i) developing a roadmap to better align women’s employment goals with early childhood care and education services, strengthening national policies, regulations, standards and monitoring systems for all childcare services; (ii) expanding options and the provision of quality and affordable childcare services that are carefully designed, targeted and delivered to meet the needs of families with young children; (iii) investing in the care economy, including in upskilling programs and support to women entrepreneurs for childcare businesses; and (iv) engaging with evolving social norms around care responsibilities through information campaigns and outreach services.
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