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Care or Cash? The Effect of Child Care Subsidies on Student Performance

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Author Info

  • Black, Sandra

    ()
    (University of Texas, Austin)

  • Devereux, Paul J.

    ()
    (University College Dublin)

  • Løken, Katrine V.

    ()
    (University of Bergen)

  • Salvanes, Kjell G.

    ()
    (Dept. of Economics, Norwegian School of Economics and Business Administration)

Abstract

Given the wide use of childcare subsidies across countries, it is surprising how little we know about the effect of these subsidies on children’s longer run outcomes. Using a sharp discontinuity in the price of childcare in Norway, we are able to isolate the effects of childcare subsidies on both parental and student outcomes. We find very small and statistically insignificant effects of childcare subsidies on childcare utilization and parental labor force participation. Despite this, we find significant positive effect of the subsidies on children’s academic performance in junior high school, suggesting the positive shock to disposable income provided by the subsidies may be helping to improve children’s scholastic aptitude.

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Bibliographic Info

Paper provided by Department of Economics, Norwegian School of Economics in its series Discussion Paper Series in Economics with number 13/2012.

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Length: 52 pages
Date of creation: 16 May 2012
Date of revision:
Handle: RePEc:hhs:nhheco:2012_013

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Postal: NHH, Department of Economics, Helleveien 30, N-5045 Bergen, Norway
Phone: +47 55 959 277
Fax: 5595 9100
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Web page: http://www.nhh.no/sam/
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Keywords: Childcare; subsidies; academic performance;

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References

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  3. Becker, Gary S & Tomes, Nigel, 1979. "An Equilibrium Theory of the Distribution of Income and Intergenerational Mobility," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1153-89, December.
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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Care or Cash? The Effect of Child Care Subsidies on Student Performance
    by maximorossi in NEP-LTV blog on 2012-06-04 13:57:29
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. Kertesi, Gábor & Kézdi, Gábor, 2012. "A roma és nem roma tanulók teszteredményei közti különbségekről és e különbségek okairól
    [The Roma/non-Roma test-score gap in Hungarian education]
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(7), pages 798-853.
  2. Felfe, Christina & Lalive, Rafael, 2013. "Early Child Care and Child Development: For Whom it Works and Why," CEPR Discussion Papers 9274, C.E.P.R. Discussion Papers.
  3. Herbst, Chris M., 2013. "Universal Child Care, Maternal Employment, and Children's Long-Run Outcomes: Evidence from the U.S. Lanham Act of 1940," IZA Discussion Papers 7846, Institute for the Study of Labor (IZA).
  4. Tarjei Havnes & Magne Mogstad, 2014. "Is universal child care leveling the playing field?," Discussion Papers 774, Research Department of Statistics Norway.
  5. Felfe, Christina & Nollenberger, Natalia & Rodríguez-Planas, Núria, 2012. "Can't Buy Mommy's Love? Universal Childcare and Children's Long-Term Cognitive Development," IZA Discussion Papers 7053, Institute for the Study of Labor (IZA).

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