IDEAS home Printed from https://ideas.repec.org/a/ucp/jpolec/doi10.1086-699979.html
   My bibliography  Save this article

Who Benefits from Universal Child Care? Estimating Marginal Returns to Early Child Care Attendance

Author

Listed:
  • Thomas Cornelissen
  • Christian Dustmann
  • Anna Raute
  • Uta Schönberg

Abstract

We examine heterogeneous treatment effects of a universal child care program in Germany by exploiting variation in attendance caused by a reform that led to a large expansion staggered across municipalities. Drawing on novel administrative data from the full population of compulsory school entry examinations, we find that children with lower (observed and unobserved) gains are more likely to select into child care than children with higher gains. Children from disadvantaged backgrounds are less likely to attend child care than children from advantaged backgrounds but have larger treatment effects because of their worse outcome when not enrolled in child care.

Suggested Citation

  • 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.
  • Handle: RePEc:ucp:jpolec:doi:10.1086/699979
    DOI: 10.1086/699979
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/699979
    Download Restriction: Access to the online full text or PDF requires a subscription.

    File URL: http://dx.doi.org/10.1086/699979
    Download Restriction: Access to the online full text or PDF requires a subscription.

    File URL: https://libkey.io/10.1086/699979?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 search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Joseph J. Doyle Jr., 2007. "Child Protection and Child Outcomes: Measuring the Effects of Foster Care," American Economic Review, American Economic Association, vol. 97(5), pages 1583-1610, December.
    2. James Heckman & Seong Hyeok Moon & Rodrigo Pinto & Peter Savelyev & Adam Yavitz, 2010. "Analyzing social experiments as implemented: evidence from the HighScope Perry Preschool Program," CeMMAP working papers CWP22/10, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    3. James J. Heckman & Vytlacil, Edward J., 2007. "Econometric Evaluation of Social Programs, Part II: Using the Marginal Treatment Effect to Organize Alternative Econometric Estimators to Evaluate Social Programs, and to Forecast their Effects in New," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 6, chapter 71, Elsevier.
    4. Pedro Carneiro & Michael Lokshin & Nithin Umapathi, 2017. "Average and Marginal Returns to Upper Secondary Schooling in Indonesia," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 32(1), pages 16-36, January.
    5. Elizabeth Cascio & Diane Whitmore Schanzenbach, 2013. "The Impacts of Expanding Access to High-Quality Preschool Education," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 44(2 (Fall)), pages 127-192.
    6. Marianne Bertrand & Jessica Pan, 2013. "The Trouble with Boys: Social Influences and the Gender Gap in Disruptive Behavior," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 32-64, January.
    7. Cornelissen, Thomas & Dustmann, Christian & Raute, Anna & Schönberg, Uta, 2016. "From LATE to MTE: Alternative methods for the evaluation of policy interventions," Labour Economics, Elsevier, vol. 41(C), pages 47-60.
    8. Pia S. Schober & Juliane F. Stahl, 2014. "Trends in der Kinderbetreuung: sozioökonomische Unterschiede verstärken sich in Ost und West," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 81(40), pages 986-994.
    9. James J. Heckman & Edward Vytlacil, 2005. "Structural Equations, Treatment Effects, and Econometric Policy Evaluation," Econometrica, Econometric Society, vol. 73(3), pages 669-738, May.
    10. Pedro Carneiro & Rita Ginja, 2014. "Long-Term Impacts of Compensatory Preschool on Health and Behavior: Evidence from Head Start," American Economic Journal: Economic Policy, American Economic Association, vol. 6(4), pages 135-173, November.
    11. Raj Chetty & John N. Friedman & Nathaniel Hilger & Emmanuel Saez & Diane Whitmore Schanzenbach & Danny Yagan, 2011. "How Does Your Kindergarten Classroom Affect Your Earnings? Evidence from Project Star," The Quarterly Journal of Economics, Oxford University Press, vol. 126(4), pages 1593-1660.
    12. Sandner, Malte & Jungmann, Tanja, 2016. "How much can we trust maternal ratings of early child development in disadvantaged samples?," Economics Letters, Elsevier, vol. 141(C), pages 73-76.
    13. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2011. "Too Young to Leave the Nest? The Effects of School Starting Age," The Review of Economics and Statistics, MIT Press, vol. 93(2), pages 455-467, May.
    14. O. Ashenfelter & D. Card (ed.), 2011. "Handbook of Labor Economics," Handbook of Labor Economics, Elsevier, edition 1, volume 4, number 4.
    15. J.J. Heckman & E.E. Leamer (ed.), 2007. "Handbook of Econometrics," Handbook of Econometrics, Elsevier, edition 1, volume 6, number 6b.
    16. Christian N. Brinch & Magne Mogstad & Matthew Wiswall, 2017. "Beyond LATE with a Discrete Instrument," Journal of Political Economy, University of Chicago Press, vol. 125(4), pages 985-1039.
    17. Patrick Kline & Christopher R. Walters, 2016. "Evaluating Public Programs with Close Substitutes: The Case of HeadStart," The Quarterly Journal of Economics, Oxford University Press, vol. 131(4), pages 1795-1848.
    18. O. Ashenfelter & D. Card (ed.), 2011. "Handbook of Labor Economics," Handbook of Labor Economics, Elsevier, edition 1, volume 4, number 5.
    19. Christopher R. Walters, 2015. "Inputs in the Production of Early Childhood Human Capital: Evidence from Head Start," American Economic Journal: Applied Economics, American Economic Association, vol. 7(4), pages 76-102, October.
    20. 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.
    21. Flavio Cunha & James J. Heckman, 2008. "Formulating, Identifying and Estimating the Technology of Cognitive and Noncognitive Skill Formation," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
    22. Currie, Janet & Thomas, Duncan, 1995. "Does Head Start Make a Difference?," American Economic Review, American Economic Association, vol. 85(3), pages 341-364, June.
    23. Michael J. Kottelenberg & Steven F. Lehrer, 2017. "Targeted or Universal Coverage? Assessing Heterogeneity in the Effects of Universal Child Care," Journal of Labor Economics, University of Chicago Press, vol. 35(3), pages 609-653.
    24. Herbst, Chris M. & Tekin, Erdal, 2012. "The geographic accessibility of child care subsidies and evidence on the impact of subsidy receipt on childhood obesity," Journal of Urban Economics, Elsevier, vol. 71(1), pages 37-52.
    25. Heckman, James J. & Humphries, John Eric & Kautz, Tim (ed.), 2014. "The Myth of Achievement Tests," University of Chicago Press Economics Books, University of Chicago Press, number 9780226100098, July.
    26. Anna, Petrenko, 2016. "Мaркування готової продукції як складова частина інформаційного забезпечення маркетингової діяльності підприємств овочепродуктового підкомплексу," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 2(1), March.
    27. Baker, Michael, 2011. "Universal Early Childhood Interventions: What is the Evidence Base?," CLSSRN working papers clsrn_admin-2011-29, Vancouver School of Economics, revised 28 Nov 2011.
    28. James J. Heckman & Sergio Urzua & Edward Vytlacil, 2006. "Understanding Instrumental Variables in Models with Essential Heterogeneity," The Review of Economics and Statistics, MIT Press, vol. 88(3), pages 389-432, August.
    29. Anirban Basu & Andrew M. Jones & Pedro Rosa Dias, 2014. "The Roles of Cognitive and Non-Cognitive Skills in Moderating the Effects of Mixed-Ability Schools on Long-Term Health," NBER Working Papers 20811, National Bureau of Economic Research, Inc.
    30. Nicole Maestas & Kathleen J. Mullen & Alexander Strand, 2013. "Does Disability Insurance Receipt Discourage Work? Using Examiner Assignment to Estimate Causal Effects of SSDI Receipt," American Economic Review, American Economic Association, vol. 103(5), pages 1797-1829, August.
    31. 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.
    32. Martin Nybom, 2017. "The Distribution of Lifetime Earnings Returns to College," Journal of Labor Economics, University of Chicago Press, vol. 35(4), pages 903-952.
    33. 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.
    34. Christina Felfe & Natalia Nollenberger & Núria Rodríguez-Planas, 2015. "Can’t buy mommy’s love? Universal childcare and children’s long-term cognitive development," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(2), pages 393-422, April.
    35. James Heckman & Seong Hyeok Moon & Rodrigo Pinto & Peter Savelyev & Adam Yavitz, 2010. "Analyzing social experiments as implemented: A reexamination of the evidence from the HighScope Perry Preschool Program," Quantitative Economics, Econometric Society, vol. 1(1), pages 1-46, July.
    36. Scott Brave & Thomas Walstrum, 2014. "Estimating marginal treatment effects using parametric and semiparametric methods," Stata Journal, StataCorp LP, vol. 14(1), pages 191-217, March.
    37. J.J. Heckman & E.E. Leamer (ed.), 2007. "Handbook of Econometrics," Handbook of Econometrics, Elsevier, edition 1, volume 6, number 6a.
    38. 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.
    39. Havnes, Tarjei & Mogstad, Magne, 2015. "Is universal child care leveling the playing field?," Journal of Public Economics, Elsevier, vol. 127(C), pages 100-114.
    40. Aakvik, Arild & Heckman, James J. & Vytlacil, Edward J., 2005. "Estimating treatment effects for discrete outcomes when responses to treatment vary: an application to Norwegian vocational rehabilitation programs," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 15-51.
    41. Magnuson, Katherine A. & Ruhm, Christopher & Waldfogel, Jane, 2007. "Does prekindergarten improve school preparation and performance?," Economics of Education Review, Elsevier, vol. 26(1), pages 33-51, February.
    42. Michael Baker, 2011. "Innis Lecture: Universal early childhood interventions: what is the evidence base?," Canadian Journal of Economics, Canadian Economics Association, vol. 44(4), pages 1069-1105, November.
    43. James Heckman, 1997. "Instrumental Variables: A Study of Implicit Behavioral Assumptions Used in Making Program Evaluations," Journal of Human Resources, University of Wisconsin Press, vol. 32(3), pages 441-462.
    44. Bjorklund, Anders & Moffitt, Robert, 1987. "The Estimation of Wage Gains and Welfare Gains in Self-selection," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 42-49, February.
    Full references (including those not matched with items on IDEAS)

    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. Cornelissen, Thomas & Dustmann, Christian & Raute, Anna & Schönberg, Uta, 2016. "From LATE to MTE: Alternative methods for the evaluation of policy interventions," Labour Economics, Elsevier, vol. 41(C), pages 47-60.
    2. Sneha Elango & Jorge Luis García & James J. Heckman & Andrés Hojman, 2015. "Early Childhood Education," NBER Chapters, in: Economics of Means-Tested Transfer Programs in the United States, Volume 2, pages 235-297, National Bureau of Economic Research, Inc.
    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. Felfe, Christina & Lalive, Rafael, 2014. "Does early child care help or hurt childrens's development?," Working Paper Series 2014:22, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    5. Felfe, Christina & Lalive, Rafael, 2018. "Does early child care affect children's development?," Journal of Public Economics, Elsevier, vol. 159(C), pages 33-53.
    6. Hojman, Andrés & López Bóo, Florencia, 2019. "Cost-Effective Public Daycare in a Low-Income Economy Benefits Children and Mothers," IDB Publications (Working Papers) 9786, Inter-American Development Bank.
    7. Kühnle, Daniel & Oberfichtner, Michael, 2017. "Does Early Child Care Attendance Influence Children's Cognitive and Non-Cognitive Skill Development?," IZA Discussion Papers 10661, Institute of Labor Economics (IZA).
    8. Patrick Kline & Christopher R. Walters, 2016. "Evaluating Public Programs with Close Substitutes: The Case of HeadStart," The Quarterly Journal of Economics, Oxford University Press, vol. 131(4), pages 1795-1848.
    9. Michael J. Kottelenberg & Steven F. Lehrer, 2017. "Targeted or Universal Coverage? Assessing Heterogeneity in the Effects of Universal Child Care," Journal of Labor Economics, University of Chicago Press, vol. 35(3), pages 609-653.
    10. Anthony Bald & Eric Chyn & Justine Hastings & Margarita Machelett, 2022. "The Causal Impact of Removing Children from Abusive and Neglectful Homes," Journal of Political Economy, University of Chicago Press, vol. 130(7), pages 1919-1962.
    11. Elizabeth U. Cascio, 2017. "Does Universal Preschool Hit the Target? Program Access and Preschool Impacts," NBER Working Papers 23215, National Bureau of Economic Research, Inc.
    12. 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.
    13. Drange, Nina & Havnes, Tarjei & Sandsør, Astrid M.J., 2016. "Kindergarten for all: Long run effects of a universal intervention," Economics of Education Review, Elsevier, vol. 53(C), pages 164-181.
    14. 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, Institute of Labor Economics (IZA).
    15. Gathmann, Christina & Vonnahme, Christina & Busse, Anna & Kim, Jongoh, 2021. "Marginal returns to citizenship and educational performance," Ruhr Economic Papers 920, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    16. Yamaguchi, Shintaro & Asai, Yukiko & Kambayashi, Ryo, 2018. "How does early childcare enrollment affect children, parents, and their interactions?," Labour Economics, Elsevier, vol. 55(C), pages 56-71.
    17. Sloczynski, Tymon, 2018. "A General Weighted Average Representation of the Ordinary and Two-Stage Least Squares Estimands," IZA Discussion Papers 11866, Institute of Labor Economics (IZA).
    18. Robert A. Moffitt & Matthew V. Zahn, 2019. "The Marginal Labor Supply Disincentives of Welfare: Evidence from Administrative Barriers to Participation," NBER Working Papers 26028, National Bureau of Economic Research, Inc.
    19. M. Caridad Araujo & Marta Dormal & Norbert Schady, 2019. "Childcare Quality and Child Development," Journal of Human Resources, University of Wisconsin Press, vol. 54(3), pages 656-682.
    20. Michael J. Kottelenberg & Steven F. Lehrer, 2018. "Does Quebec’s subsidized child care policy give boys and girls an equal start?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 51(2), pages 627-659, May.

    More about this item

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

    Lists

    This item is featured on the following reading lists, Wikipedia, or ReplicationWiki pages:
    1. Who Benefits from Universal Child Care? Estimating Marginal Returns to Early Child Care Attendance (JPE 2018) in ReplicationWiki

    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:ucp:jpolec:doi:10.1086/699979. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://www.journals.uchicago.edu/JPE .

    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: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/JPE .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.