Institutional stickiness through subsidiarity: Germany’s childcare guarantee

Abstract Childcare has held a place in national and international policy conversations in recent decades as governments seek to expand economic opportunities for women. Germany has passed several policies towards this end since reunification, including a legal right, or guarantee, for all children to have access to subsidised care. Scholars across disciplines have taken note of the regional patterns that persist in citizens’ uptake of subsidised childcare programmes. This article analyses the patterns through an institutional economics lens, applying Boettke, Coyne, and Leeson’s (2008) institutional stickiness framework to policy changes that have exhibited varying levels of success in former East and West Germany. Subsidiarity acts as a channel for institutional stickiness, allowing local values to shape both the supply of and the demand for public childcare.