IDEAS home Printed from https://ideas.repec.org/a/aea/aejpol/v18y2026i2p404-40.html

Short- and Long-Term Effects of Universal Preschool: Evidence from the Arab Population in Israel

Author

Listed:
  • Elad DeMalach
  • Analia Schlosser

Abstract

We estimate the causal impacts of universal preschool by leveraging a quasi-experimental design based on Israel's implementation of free public preschool for children ages 3 and 4 beginning in September 1999. We focus on the Arab population, who were the main beneficiaries of the first phase of the law's implementation. Using a difference-in-differences (DID) research design, we find that universal preschool enhanced individuals' academic performance from elementary school through high school, improved the learning environment, and increased postsecondary enrollment. Additional benefits include reduced juvenile delinquency among males and decreased early marriage among females.

Suggested Citation

  • Elad DeMalach & Analia Schlosser, 2026. "Short- and Long-Term Effects of Universal Preschool: Evidence from the Arab Population in Israel," American Economic Journal: Economic Policy, American Economic Association, vol. 18(2), pages 404-440, May.
  • Handle: RePEc:aea:aejpol:v:18:y:2026:i:2:p:404-40
    DOI: 10.1257/pol.20240044
    as

    Download full text from publisher

    File URL: https://www.aeaweb.org/doi/10.1257/pol.20240044
    Download Restriction: Access to full text is restricted to AEA members and institutional subscribers.

    File URL: https://doi.org/10.3886/E237201V1
    Download Restriction: no

    File URL: https://www.aeaweb.org/articles/materials/25033
    Download Restriction: no

    File URL: https://www.aeaweb.org/articles/materials/25034
    Download Restriction: no

    File URL: https://libkey.io/10.1257/pol.20240044?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. James Heckman & Flavio Cunha, 2007. "The Technology of Skill Formation," American Economic Review, American Economic Association, vol. 97(2), pages 31-47, May.
    2. Anderson, Michael L., 2008. "Multiple Inference and Gender Differences in the Effects of Early Intervention: A Reevaluation of the Abecedarian, Perry Preschool, and Early Training Projects," Journal of the American Statistical Association, American Statistical Association, vol. 103(484), pages 1481-1495.
    3. Goodman-Bacon, Andrew, 2021. "Difference-in-differences with variation in treatment timing," Journal of Econometrics, Elsevier, vol. 225(2), pages 254-277.
    4. Flavio Cunha & James J. Heckman & Susanne M. Schennach, 2010. "Estimating the Technology of Cognitive and Noncognitive Skill Formation," Econometrica, Econometric Society, vol. 78(3), pages 883-931, May.
    5. Jonathan Meer & Jeremy West, 2016. "Effects of the Minimum Wage on Employment Dynamics," Journal of Human Resources, University of Wisconsin Press, vol. 51(2), pages 500-522.
    6. David Deming, 2009. "Early Childhood Intervention and Life-Cycle Skill Development: Evidence from Head Start," American Economic Journal: Applied Economics, American Economic Association, vol. 1(3), pages 111-134, July.
    7. Thomas Cornelissen & Christian Dustmann & Anna Raute & Uta Schönberg, 2018. "Who Benefits from Universal Child Care? Estimating Marginal Returns to Early Child Care Attendance," Journal of Political Economy, University of Chicago Press, vol. 126(6), pages 2356-2409.
    8. Gabriella Conti & James J. Heckman & Rodrigo Pinto, 2016. "The Effects of Two Influential Early Childhood Interventions on Health and Healthy Behaviour," Economic Journal, Royal Economic Society, vol. 126(596), pages 28-65, October.
    9. Guthrie Gray-Lobe & Parag A Pathak & Christopher R Walters, 2023. "The Long-Term Effects of Universal Preschool in Boston," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 138(1), pages 363-411.
    10. Suleiman Abu-Bader & Daniel Gottlieb, 2013. "Poverty, Education, and Employment Among the Arab-Bedouin in Israel," Economic Studies in Inequality, Social Exclusion, and Well-Being, in: Valerie Berenger & Florent Bresson (ed.), Poverty and Social Exclusion around the Mediterranean Sea, edition 127, chapter 0, pages 213-245, Springer.
    11. Gary S. Becker, 1981. "A Treatise on the Family," NBER Books, National Bureau of Economic Research, Inc, number beck81-1.
    12. Clive R. Belfield & Milagros Nores & Steve Barnett & Lawrence Schweinhart, 2021. "Corrigendum to “The High/Scope Perry Preschool Program: Cost–Benefit Analysis Using Data from the Age–40 Followup”," Journal of Human Resources, University of Wisconsin Press, vol. 56(3), pages 969-969.
    13. Drange, Nina & Telle, Kjetil, 2015. "Promoting integration of immigrants: Effects of free child care on child enrollment and parental employment," Labour Economics, Elsevier, vol. 34(C), pages 26-38.
    14. Almond, Douglas & Currie, Janet, 2011. "Human Capital Development before Age Five," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 15, pages 1315-1486, Elsevier.
    15. James J. Heckman & Dimitriy V. Masterov, 2007. "The Productivity Argument for Investing in Young Children," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(3), pages 446-493.
    16. Bassok, Daphna & Fitzpatrick, Maria & Loeb, Susanna, 2014. "Does state preschool crowd-out private provision? The impact of universal preschool on the childcare sector in Oklahoma and Georgia," Journal of Urban Economics, Elsevier, vol. 83(C), pages 18-33.
    17. Martha J. Bailey & Shuqiao Sun & Brenden Timpe, 2021. "Prep School for Poor Kids: The Long-Run Impacts of Head Start on Human Capital and Economic Self-Sufficiency," American Economic Review, American Economic Association, vol. 111(12), pages 3963-4001, December.
    18. Havnes, Tarjei & Mogstad, Magne, 2015. "Is universal child care leveling the playing field?," Journal of Public Economics, Elsevier, vol. 127(C), pages 100-114.
    19. Lance Lochner & Enrico Moretti, 2004. "The Effect of Education on Crime: Evidence from Prison Inmates, Arrests, and Self-Reports," American Economic Review, American Economic Association, vol. 94(1), pages 155-189, March.
    20. Joshua Angrist & Victor Lavy, 2009. "The Effects of High Stakes High School Achievement Awards: Evidence from a Randomized Trial," American Economic Review, American Economic Association, vol. 99(4), pages 1384-1414, September.
    21. Elizabeth U. Cascio, 2023. "Does Universal Preschool Hit the Target?: Program Access and Preschool Impacts," Journal of Human Resources, University of Wisconsin Press, vol. 58(1), pages 1-42.
    22. Patrick Kline & Christopher R. Walters, 2016. "Evaluating Public Programs with Close Substitutes: The Case of HeadStart," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(4), pages 1795-1848.
    23. Gary S. Becker & Casey B. Mulligan, 1997. "The Endogenous Determination of Time Preference," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(3), pages 729-758.
    24. Alberto Abadie, 2006. "Poverty, Political Freedom, and the Roots of Terrorism," American Economic Review, American Economic Association, vol. 96(2), pages 50-56, May.
    25. Martha J. Bailey & Andrew Goodman-Bacon, 2015. "The War on Poverty's Experiment in Public Medicine: Community Health Centers and the Mortality of Older Americans," American Economic Review, American Economic Association, vol. 105(3), pages 1067-1104, March.
    26. A. Colin Cameron & Jonah B. Gelbach & Douglas L. Miller, 2008. "Bootstrap-Based Improvements for Inference with Clustered Errors," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 414-427, August.
    27. Tarjei Havnes & Magne Mogstad, 2011. "No Child Left Behind: Subsidized Child Care and Children's Long-Run Outcomes," American Economic Journal: Economic Policy, American Economic Association, vol. 3(2), pages 97-129, May.
    28. García, Jorge Luis & Heckman, James J. & Ziff, Anna L., 2018. "Gender differences in the benefits of an influential early childhood program," European Economic Review, Elsevier, vol. 109(C), pages 9-22.
    29. Berlinski, Samuel & Galiani, Sebastian & Manacorda, Marco, 2008. "Giving children a better start: Preschool attendance and school-age profiles," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1416-1440, June.
    30. 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.
    31. Jo Blanden & Emilia Del Bono & Sandra McNally & Birgitta Rabe, 2016. "Universal Pre‐school Education: The Case of Public Funding with Private Provision," Economic Journal, Royal Economic Society, vol. 0(592), pages 682-723, May.
    32. Esteban Aucejo & Jonathan James, 2021. "The Path to College Education: The Role of Math and Verbal Skills," Journal of Political Economy, University of Chicago Press, vol. 129(10), pages 2905-2946.
    33. van Huizen, Thomas & Plantenga, Janneke, 2018. "Do children benefit from universal early childhood education and care? A meta-analysis of evidence from natural experiments," Economics of Education Review, Elsevier, vol. 66(C), pages 206-222.
    34. Hungerman, Daniel M., 2014. "The effect of education on religion: Evidence from compulsory schooling laws," Journal of Economic Behavior & Organization, Elsevier, vol. 104(C), pages 52-63.
    35. Nina Drange & Tarjei Havnes, 2019. "Early Childcare and Cognitive Development: Evidence from an Assignment Lottery," Journal of Labor Economics, University of Chicago Press, vol. 37(2), pages 581-620.
    36. Callaway, Brantly & Sant’Anna, Pedro H.C., 2021. "Difference-in-Differences with multiple time periods," Journal of Econometrics, Elsevier, vol. 225(2), pages 200-230.
    37. Heckman, James J. & Moon, Seong Hyeok & Pinto, Rodrigo & Savelyev, Peter A. & Yavitz, Adam, 2010. "The rate of return to the HighScope Perry Preschool Program," Journal of Public Economics, Elsevier, vol. 94(1-2), pages 114-128, February.
    38. Jorge Luis García & James J. Heckman & Victor Ronda, 2023. "The Lasting Effects of Early-Childhood Education on Promoting the Skills and Social Mobility of Disadvantaged African Americans and Their Children," Journal of Political Economy, University of Chicago Press, vol. 131(6), pages 1477-1506.
    39. Resul Cesur & Naci Mocan, 2018. "Education, religion, and voter preference in a Muslim country," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(1), pages 1-44, January.
    40. Victor Lavy & Analia Schlosser, 2005. "Targeted Remedial Education for Underperforming Teenagers: Costs and Benefits," Journal of Labor Economics, University of Chicago Press, vol. 23(4), pages 839-874, October.
    41. James Heckman & Rodrigo Pinto & Peter Savelyev, 2013. "Understanding the Mechanisms through Which an Influential Early Childhood Program Boosted Adult Outcomes," American Economic Review, American Economic Association, vol. 103(6), pages 2052-2086, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Melanie Jones & Ezgi Kaya & Suzanna Nesom, 2026. "Does Free Pre-school Childcare Increase Parental Employment?," Discussion Papers 26/03, Department of Economics, University of York.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mariana Zerpa, 2025. "Short- and medium-run impacts of preschool education: evidence from state pre-K programs," Journal of Population Economics, Springer;European Society for Population Economics, vol. 38(3), pages 1-39, September.
    2. van Huizen, Thomas & Plantenga, Janneke, 2018. "Do children benefit from universal early childhood education and care? A meta-analysis of evidence from natural experiments," Economics of Education Review, Elsevier, vol. 66(C), pages 206-222.
    3. Jens Dietrichson & Ida Lykke Kristiansen & Bjørn A. Viinholt, 2020. "Universal Preschool Programs And Long‐Term Child Outcomes: A Systematic Review," Journal of Economic Surveys, Wiley Blackwell, vol. 34(5), pages 1007-1043, December.
    4. Tang, Yalin & Liu, Chengfang & Song, Yingquan, 2026. "The long-run human capital benefits of the one-village-one-preschool pilot in rural northwestern China," Journal of Economic Behavior & Organization, Elsevier, vol. 241(C).
    5. Holla,Alaka & Bendini,Maria Magdalena & Dinarte Diaz,Lelys Ileana & Trako,Iva, 2021. "Is Investment in Preprimary Education Too Low ? Lessons from (Quasi) ExperimentalEvidence across Countries," Policy Research Working Paper Series 9723, The World Bank.
    6. Britta Rude, 2022. "Can We Grow with our Children? The Effects of a Comprehensive Early Childhood Development Program," ifo Working Paper Series 372, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    7. Maya Rossin-Slater & Miriam Wüst, 2016. "What is the Added Value of Preschool for Poor Children? Long-Term and Intergenerational Impacts and Interactions with an Infant Health Intervention," NBER Working Papers 22700, National Bureau of Economic Research, Inc.
    8. Mara Barschkett, 2022. "Age-specific Effects of Early Daycare on Children's Health," Discussion Papers of DIW Berlin 2028, DIW Berlin, German Institute for Economic Research.
    9. Akabayashi, Hideo & Ruberg, Tim & Shikishima, Chizuru & Yamashita, Jun, 2023. "Education-oriented and care-oriented preschools: Implications on child development," Labour Economics, Elsevier, vol. 84(C).
    10. Hikaru Kawarazaki, 2023. "Early childhood education and care: effects after half a century and their mechanisms," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(4), pages 2725-2797, October.
    11. Rossin-Slater, Maya & Wüst, Miriam, 2016. "What is the Added Value of Preschool? Long-Term Impacts and Interactions with a Health Intervention," IZA Discussion Papers 10254, IZA Network @ LISER.
    12. Britta Rude, 2024. "Middle-run educational impacts of comprehensive early childhood interventions: evidence from a pioneer program in Chile," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(2), pages 1-30, June.
    13. Mara Barschkett, 2022. "Age-specific Effects of Early Daycare on Children’s Health," Berlin School of Economics Discussion Papers 0005, Berlin School of Economics.
    14. repec:osf:socarx:rnkgs_v1 is not listed on IDEAS
    15. Alison Andrew & Orazio Attanasio & Raquel Bernal & Lina Cardona Sosa & Sonya Krutikova & Marta Rubio-Codina, 2019. "Preschool Quality and Child Development," NBER Working Papers 26191, National Bureau of Economic Research, Inc.
    16. Kühnle, Daniel & Oberfichtner, Michael, 2017. "Does Early Child Care Attendance Influence Children's Cognitive and Non-Cognitive Skill Development?," IZA Discussion Papers 10661, IZA Network @ LISER.
    17. Pierre Lefebvre & Claude Felteau, 2023. "Can universal preschool education intensities counterbalance parental socioeconomic gradients? Repeated international evidence from Fourth graders skills achievement," Working Papers 23-01, Research Group on Human Capital, University of Quebec in Montreal's School of Management.
    18. Corazzini, Luca & Meschi, Elena & Pavese, Caterina, 2021. "Impact of early childcare on immigrant children’s educational performance," Economics of Education Review, Elsevier, vol. 85(C).
    19. Tang, Yalin & Hao, Xinmeng & Guo, Yuhe & Liu, Chengfang, 2025. "Cognitive spillover benefits of early childhood education: Quasi-experimental evidence based on random class assignment from China," International Journal of Educational Development, Elsevier, vol. 117(C).
    20. Brutti, Zelda & Montolio, Daniel, 2021. "Preventing criminal minds: Early education access and adult offending behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 191(C), pages 97-126.
    21. Morabito, Christian & Van de gaer, Dirk & Figueroa, José Luis & Vandenbroeck, Michel, 2018. "Effects of high versus low-quality preschool education: A longitudinal study in Mauritius," Economics of Education Review, Elsevier, vol. 65(C), pages 126-137.

    More about this item

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:aejpol:v:18:y:2026:i:2:p:404-40. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael P. Albert (email available below). General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.