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Early Child Care and Child Development: For Whom it Works and Why

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  • Felfe, Christina

    ()
    (University of St. Gallen)

  • Lalive, Rafael

    ()
    (University of Lausanne)

Abstract

Many countries are currently expanding access to child care for young children. But are all children equally likely to benefit from such expansions? We address this question by adopting a marginal treatment effects framework. We study the West German setting where high quality center-based care is severely rationed and use within state differences in child care supply as exogenous variation in child care attendance. Data from the German Socio-Economic Panel provides comprehensive information on child development measures along with detailed information on child care, mother-child interactions, and maternal labor supply. Results indicate strong differences in the effects of child care with respect to observed characteristics (children's age, birth weight and socio-economic background), but less so with respect to unobserved determinants of selection into child care. Underlying mechanisms are a substitution of maternal care with center-based care, an increase in average quality of maternal care, and an increase in maternal earnings.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7100.

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Length: 46 pages
Date of creation: Dec 2012
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Handle: RePEc:iza:izadps:dp7100

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Keywords: child care; child development; marginal treatment effects;

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  1. Black, Sandra & Devereux, Paul J. & Løken, Katrine V. & Salvanes, Kjell G., 2012. "Care or Cash? The Effect of Child Care Subsidies on Student Performance," Discussion Paper Series in Economics 13/2012, Department of Economics, Norwegian School of Economics.
  2. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP): Scope, Evolution and Enhancements," SOEPpapers on Multidisciplinary Panel Data Research 1, DIW Berlin, The German Socio-Economic Panel (SOEP).
  3. Christopher J. Ruhm, 2004. "Parental Employment and Child Cognitive Development," Journal of Human Resources, University of Wisconsin Press, vol. 39(1).
  4. Havnes, Tarjei & Mogstad, Magne, 2009. "No Child Left Behind: Universal Child Care and Children's Long-Run Outcomes," Memorandum 23/2009, Oslo University, Department of Economics.
  5. Libertad González Luna, 2011. "The effects of a universal child benefit," Economics Working Papers 1281, Department of Economics and Business, Universitat Pompeu Fabra.
  6. Pedro Carneiro & James J. Heckman & Edward J. Vytlacil, 2011. "Estimating Marginal Returns to Education," American Economic Review, American Economic Association, vol. 101(6), pages 2754-81, October.
  7. James J. Heckman & Edward J. Vytlacil, 2000. "Local Instrumental Variables," NBER Technical Working Papers 0252, National Bureau of Economic Research, Inc.
  8. Fitzpatrick Maria D, 2008. "Starting School at Four: The Effect of Universal Pre-Kindergarten on Children's Academic Achievement," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-40, November.
  9. Elizabeth U. Cascio, 2009. "Do Investments in Universal Early Education Pay Off? Long-term Effects of Introducing Kindergartens into Public Schools," NBER Working Papers 14951, National Bureau of Economic Research, Inc.
  10. Berlinski, Samuel & Galiani, Sebastian & Gertler, Paul, 2009. "The effect of pre-primary education on primary school performance," Journal of Public Economics, Elsevier, vol. 93(1-2), pages 219-234, February.
  11. Heckman, James J. & Masterov, Dimitriy V., 2007. "The Productivity Argument for Investing in Young Children," IZA Discussion Papers 2725, Institute for the Study of Labor (IZA).
  12. Michael Baker & Jonathan Gruber & Kevin Milligan, 2005. "Universal Childcare, Maternal Labor Supply, and Family Well-Being," NBER Working Papers 11832, National Bureau of Economic Research, Inc.
  13. Blau, Francine D & Grossberg, Adam J, 1992. "Maternal Labor Supply and Children's Cognitive Development," The Review of Economics and Statistics, MIT Press, vol. 74(3), pages 474-81, August.
  14. Datta Gupta, Nabanita & Simonsen, Marianne, 2010. "Non-cognitive child outcomes and universal high quality child care," Journal of Public Economics, Elsevier, vol. 94(1-2), pages 30-43, February.
  15. Carneiro, Pedro & Løken, Katrine Vellesen & Salvanes, Kjell Gunnar, 2010. "A Flying Start? Long Term Consequences of Maternal Time Investments in Children During Their First Year of Life," Working Papers in Economics 06/10, University of Bergen, Department of Economics.
  16. Katherine A. Magnuson & Christopher J. Ruhm & Jane Waldfogel, 2004. "Does Prekindergarten Improve School Preparation and Performance?," NBER Working Papers 10452, National Bureau of Economic Research, Inc.
  17. Gordon B. Dahl & Lance Lochner, 2005. "The Impact of Family Income on Child Achievement," NBER Working Papers 11279, National Bureau of Economic Research, Inc.
  18. 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).
  19. Charles L. Baum II, 2003. "Does Early Maternal Employment Harm Child Development? An Analysis of the Potential Benefits of Leave Taking," Journal of Labor Economics, University of Chicago Press, vol. 21(2), pages 381-408, April.
  20. Edward Vytlacil, 2002. "Independence, Monotonicity, and Latent Index Models: An Equivalence Result," Econometrica, Econometric Society, vol. 70(1), pages 331-341, January.
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Citations

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Cited by:
  1. Ylenia Brilli & Daniela Del Boca & Chiara Monfardini, 2013. "Child Care Arrangements: Determinants and Consequences," CHILD Working Papers Series 18, Centre for Household, Income, Labour and Demographic Economics (CHILD) - CCA.
  2. Alexandra Kröll & Rainald Borck, 2013. "The Influence of Child Care on Maternal Health and Mother-Child Interaction," CESifo Working Paper Series 4289, CESifo Group Munich.
  3. Bauernschuster, Stefan & Hener, Timo & Rainer, Helmut, 2013. "Does the Expansion of Public Child Care Increase Birth Rates? Evidence from a Low-Fertility Country," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79909, Verein für Socialpolitik / German Economic Association.
  4. Stefan Bauernschuster & Timo Hener & Helmut Rainer, 2013. "Does Expanding Public Child Care Encourage Fertility? County-Level Evidence from Germany," Ifo Working Paper Series Ifo Working Paper No. 158, Ifo Institute for Economic Research at the University of Munich.
  5. Stefan Bauernschuster & Timo Hener & Helmut Rainer, 2014. "Children of a (Policy) Revolution: The Introduction of Universal Child Care and its Effect on Fertility," CESifo Working Paper Series 4776, CESifo Group Munich.

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