Is Universal Child Care Leveling the Playing Field?
Abstract
Many developed countries currently consider a move towards a universal child care program. The challenge in assessing the case for universal child care programs is that the evidence base is scarce. We analyze the staged expansion of subsidized, universally accessible child care in Norway. Our approach differs from existing literature which estimate mean impacts of universal child care programs; in contrast, we use non-linear difference-in-differences methods to estimate quantile treatment effects, showing how the child care expansion affected the earnings distribution of exposed children as adults. We complement these estimates with local linear regressions of the child care effects by family income. Our findings suggest that the effects of child care vary systematically across the earnings distribution, that the mean impact misses a lot, and that children of low income parents seem to be the primary beneficiaries of subsidized child care. These findings are important when considering the case for universal child care programs, since the benefits of providing subsidized child care to middle and upper-class children are unlikely to exceed the costs. To help understand the differential effects on earnings, we examine how the child care expansion affected the educational trajectories and cognitive test scores of the exposed children.Download Info
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 4014.Length:
Date of creation: 2012
Date of revision:
Handle: RePEc:ces:ceswps:_4014
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Related research
Keywords: universal child care; child development; non-linear difference-in-differences; heterogeneity; quantile treatment effects;Other versions of this item:
- Havnes, Tarjei & Mogstad, Magne, 2012. "Is Universal Child Care Leveling the Playing Field?," Memorandum 31/2012, Oslo University, Department of Economics.
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
- H40 - Public Economics - - Publicly Provided Goods - - - General
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Drange, Nina & Havnes, Tarjei & Sandsør, Astrid M. J., 2012.
"Kindergarten for All: Long Run Effects of a Universal Intervention,"
IZA Discussion Papers
6986, Institute for the Study of Labor (IZA).
- Nina Drange & Tarjei Havnes, 2012. "Kindergarten for all: Long run effects of a universal intervention," Discussion Papers 695, Research Department of Statistics Norway.
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