This paper examines the labor market consequences of the home-care-allowance for single parents in Finland. The home-care-allowance, also called cash-for-care, is a benefit paid to parents who take care of their children at home instead of using public daycare. In light of the fact that Finland and the Nordic countries are characterized by higher levels of gender equality and mother’s labor force participation this policy is widely discussed and criticized for contradicting these aims. Previous research indicated for the home care allowance to reduce maternal labor force participation. Using Finnish register data, this paper assesses: (1) to what extend single parents use the cash-for-care benefit in Finland, and the factors that influence

the use of this benefit for single parents, including education and labor market attachment. (2) Employment trajectories for single parents compared to two family households by different cash-for-care use lengths. (3) The consequences for labor market participation when single parents use the home care allowance, and if that effect varies by length of the cash-for-care use. Considering that single parent households face disadvantages in terms of fewer resources anyway, this paper contributes by answering the question whether single parents are disproportionally disadvantaged when using cash-for-care.