IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp12585.html
   My bibliography  Save this paper

Cost-Effective Public Daycare in a Low-Income Economy Benefits Children and Mothers

Author

Listed:
  • Hojman, Andrés

    (Pontificia Universidad Catolica de Chile)

  • López Bóo, Florencia

    (Inter-American Development Bank)

Abstract

This paper evaluates the impacts of a public program that introduced access to part-time childcare centers for children younger than four years of age in poor urban areas in Nicaragua. We explore the effects of this program on several measures of children's and parental outcomes. Our identification strategy exploits the original randomization and the distance to the centers, using Instrumental Variables (IV) and Marginal Treatment Effects (MTE) methods to tackle imperfect compliance with the original treatment assignments. We present a theoretical model to rationalize our IV assumptions. We find a positive impact of 0.35 standard deviations on the personal-social domain of a widely used development test, and an impact of 14 percentage points on mothers' work participation. Our results are robust to different econometric specifications. We also find suggestive evidence that quality greatly matters for the impacts at the child level, but not at the mother level.

Suggested Citation

  • Hojman, Andrés & López Bóo, Florencia, 2019. "Cost-Effective Public Daycare in a Low-Income Economy Benefits Children and Mothers," IZA Discussion Papers 12585, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp12585
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp12585.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. James J. Heckman & Rodrigo Pinto, 2015. "Econometric Mediation Analyses: Identifying the Sources of Treatment Effects from Experimentally Estimated Production Technologies with Unmeasured and Mismeasured Inputs," Econometric Reviews, Taylor & Francis Journals, vol. 34(1-2), pages 6-31, February.
    3. Herbst, Chris M. & Tekin, Erdal, 2010. "Child care subsidies and child development," Economics of Education Review, Elsevier, vol. 29(4), pages 618-638, August.
    4. Kleibergen, Frank & Paap, Richard, 2006. "Generalized reduced rank tests using the singular value decomposition," Journal of Econometrics, Elsevier, vol. 133(1), pages 97-126, July.
    5. James J. Heckman & Edward Vytlacil, 2005. "Structural Equations, Treatment Effects, and Econometric Policy Evaluation," Econometrica, Econometric Society, vol. 73(3), pages 669-738, May.
    6. Douglas Almond & Janet Currie & Valentina Duque, 2018. "Childhood Circumstances and Adult Outcomes: Act II," Journal of Economic Literature, American Economic Association, vol. 56(4), pages 1360-1446, December.
    7. 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.
    8. M. Fort & A. Ichino & G. Zanella, 2016. "Cognitive and non-cognitive costs of daycare 0–2 for girls," Working Papers wp1056, Dipartimento Scienze Economiche, Universita' di Bologna.
    9. Jose Rosero & Hessel Oosterbeek, 2011. "Trade-offs between Different Early Childhood Interventions: Evidence from Ecuador," Tinbergen Institute Discussion Papers 11-102/3, Tinbergen Institute.
    10. Norbert Schady & Jere Behrman & Maria Caridad Araujo & Rodrigo Azuero & Raquel Bernal & David Bravo & Florencia Lopez-Boo & Karen Macours & Daniela Marshall & Christina Paxson & Renos Vakis, 2015. "Wealth Gradients in Early Childhood Cognitive Development in Five Latin American Countries," Journal of Human Resources, University of Wisconsin Press, vol. 50(2), pages 446-463.
    11. 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.
    12. 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.
    13. 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.
    14. 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.
    15. James J. Heckman, 2008. "Schools, Skills, And Synapses," Economic Inquiry, Western Economic Association International, vol. 46(3), pages 289-324, July.
    16. 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.
    17. Carta, Francesca & Rizzica, Lucia, 2018. "Early kindergarten, maternal labor supply and children's outcomes: Evidence from Italy," Journal of Public Economics, Elsevier, vol. 158(C), pages 79-102.
    18. Natalija Novta & Joyce Wong, 2017. "Women at Work in Latin America and the Caribbean," IMF Working Papers 2017/034, International Monetary Fund.
    19. 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.
    20. 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.
    21. Michael Baker & Jonathan Gruber & Kevin Milligan, 2008. "Universal Child Care, Maternal Labor Supply, and Family Well-Being," Journal of Political Economy, University of Chicago Press, vol. 116(4), pages 709-745, August.
    22. Havnes, Tarjei & Mogstad, Magne, 2015. "Is universal child care leveling the playing field?," Journal of Public Economics, Elsevier, vol. 127(C), pages 100-114.
    23. Greg J. Duncan & Katherine Magnuson, 2013. "Investing in Preschool Programs," Journal of Economic Perspectives, American Economic Association, vol. 27(2), pages 109-132, Spring.
    24. Samuel Berlinski & Sebastian Galiani & Patrick J. McEwan, 2011. "Preschool and Maternal Labor Market Outcomes: Evidence from a Regression Discontinuity Design," Economic Development and Cultural Change, University of Chicago Press, vol. 59(2), pages 313-344.
    25. Michael Baker & Jonathan Gruber & Kevin Milligan, 2015. "Non-Cognitive Deficits and Young Adult Outcomes: The Long-Run Impacts of a Universal Child Care Program," NBER Working Papers 21571, National Bureau of Economic Research, Inc.
    26. 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.
    27. repec:idb:brikps:7259 is not listed on IDEAS
    28. Grace E. Noboa-Hidalgo & Sergio S. Urzúa, 2012. "The Effects of Participation in Public Child Care Centers: Evidence from Chile," Journal of Human Capital, University of Chicago Press, vol. 6(1), pages 1-34.
    29. Samuel Berlinski & Norbert Schady (ed.), 2015. "The Early Years," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-53649-5, November.
    30. Aimee Verdisco & Santiago Cueto & Jennelle Thompson, 2016. "Early Childhood Development: Wealth, the Nurturing Environment and Inequality First Results from the PRIDI Database," IDB Publications (Working Papers) 95256, Inter-American Development Bank.
    31. María Caridad Araujo & Martín Ardanaz & Edna Armendáriz & Jere R. Behrman & Samuel Berlinski & Julian P. Cristia & Yyannu Cruz-Aguayo & Luca Flabbi & Diana Hincapie & Analía Jalmovich & Sharon Lynn Ka, 2015. "The Early Years: Child Well-being and the Role of Public Policy," IDB Publications (Books), Inter-American Development Bank, number 91496 edited by Samuel Berlinski & Norbert Schady, February.
    32. 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.
    33. Felfe, Christina & Lalive, Rafael, 2018. "Does early child care affect children's development?," Journal of Public Economics, Elsevier, vol. 159(C), pages 33-53.
    34. Jere R. Behrman & Yingmei Cheng & Petra E. Todd, 2004. "Evaluating Preschool Programs When Length of Exposure to the Program Varies: A Nonparametric Approach," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 108-132, February.
    35. Bernal, Raquel & Fernández, Camila, 2013. "Subsidized childcare and child development in Colombia: Effects of Hogares Comunitarios de Bienestar as a function of timing and length of exposure," Social Science & Medicine, Elsevier, vol. 97(C), pages 241-249.
    36. repec:mpr:mprres:7835 is not listed on IDEAS
    37. Barnett, W.S. & Masse, Leonard N., 2007. "Comparative benefit-cost analysis of the Abecedarian program and its policy implications," Economics of Education Review, Elsevier, vol. 26(1), pages 113-125, February.
    38. repec:idb:brikps:81938 is not listed on IDEAS
    39. 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.
    40. Verdisco, Aimee & Cueto, Santiago & Thompson, Jennelle, 2016. "Early Childhood Development: Wealth, the Nurturing Environment and Inequality First Results from the PRIDI Database," IDB Publications (Working Papers) 7788, Inter-American Development Bank.
    41. Araujo, María Caridad & Ardanaz, Martín & Armendáriz, Edna & Behrman, Jere R. & Berlinski, Samuel & Cristia, Julian P. & Flabbi, Luca & Hincapie, Diana & Jalmovich, Analía & Kagan, Sharon Lynn & López, 2015. "The Early Years: Child Well-being and the Role of Public Policy," IDB Publications (Books), Inter-American Development Bank, number 7259.
    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. Finlay, Jocelyn E., 2021. "Women’s reproductive health and economic activity: A narrative review," World Development, Elsevier, vol. 139(C).
    2. Almeida, Rita K. & Viollaz, Mariana, 2022. "Women in Paid Employment: A Role for Public Policies and Social Norms in Guatemala," IZA Discussion Papers 15029, Institute of Labor Economics (IZA).
    3. Seema Jayachandran, 2021. "Social Norms as a Barrier to Women’s Employment in Developing Countries," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 69(3), pages 576-595, September.

    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. Hojman, Andrés & Lopez Boo, Florencia, 2022. "Public childcare benefits children and mothers: Evidence from a nationwide experiment in a developing country," Journal of Public Economics, Elsevier, vol. 212(C).
    2. 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.
    3. Raquel Bernal & Michele Giannola & Milagros Nores, 2022. "The Effects of a Project and Play-Based Early Education Program on Medium Term Developmental Trajectories of Young Children in a Low-Income Setting," Working Papers 2022-027, Human Capital and Economic Opportunity Working Group.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. Contreras, David & Sanchez, Rafael, 2018. "Cognitive and Non-Cognitive Effects of Nursery Care in the Medium Run under Unobserved Heterogeneity," MPRA Paper 86289, University Library of Munich, Germany.
    9. 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.
    10. Daniel Kuehnle & Michael Oberfichtner, 2020. "Does Starting Universal Childcare Earlier Influence Children’s Skill Development?," Demography, Springer;Population Association of America (PAA), vol. 57(1), pages 61-98, February.
    11. Samuel Berlinski & Norbert Schady, 2015. "Daycare Services: It’s All about Quality," Palgrave Macmillan Books, in: Samuel Berlinski & Norbert Schady (ed.), The Early Years, chapter 4, pages 91-119, Palgrave Macmillan.
    12. M. Caridad Araujo & Yyannu Cruz-Aguayo & Analia Jaimovich & Sharon Lynn Kagan, 2015. "Drawing Up an Institutional Architecture," IDB Publications (Book Chapters), in: Samuel Berlinski & Norbert Schady (ed.), The Early Years: Child Well-Being and the Role of Public Policy, edition 1, chapter 7, pages 179-202, Inter-American Development Bank.
    13. 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.
    14. Martin Halla & Nicole Schneeweis & Martina Zweimüller & Natalia Danzer, 2017. "Parental Leave, (In)formal Childcare and Long-term Child Outcomes," CDL Aging, Health, Labor working papers 2017-04, The Christian Doppler (CD) Laboratory Aging, Health, and the Labor Market, Johannes Kepler University Linz, Austria.
    15. Carta, Francesca & Rizzica, Lucia, 2018. "Early kindergarten, maternal labor supply and children's outcomes: Evidence from Italy," Journal of Public Economics, Elsevier, vol. 158(C), pages 79-102.
    16. 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.
    17. Nores, Milagros & Bernal, Raquel & Barnett, W. Steven, 2019. "Center-based care for infants and toddlers: The aeioTU randomized trial," Economics of Education Review, Elsevier, vol. 72(C), pages 30-43.
    18. Felfe, Christina & Lalive, Rafael, 2018. "Does early child care affect children's development?," Journal of Public Economics, Elsevier, vol. 159(C), pages 33-53.
    19. Shintaro Yamaguchi & Yukiko Asai & Ryo Kambayashi, 2017. "How Does Early Childcare Enrollment Affect Children, Parents, and Their Interactions?," Department of Economics Working Papers 2017-05, McMaster University.
    20. Yamaguchi, Shintaro & Asai, Yukiko & Kambayashi, Ryo, 2017. "How Does Early Childcare Enrollment Affect Children, Parents, and Their Interactions?," Discussion Paper Series 656, Institute of Economic Research, Hitotsubashi University.

    More about this item

    Keywords

    RCT; early childhood development; daycare; Latin America; maternal labor force participation; quality;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:iza:izadps:dp12585. 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://edirc.repec.org/data/izaaade.html .

    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: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    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.