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

  • Felfe, Christina

    ()

    (University of St. Gallen)

  • Lalive, Rafael

    ()

    (University of Lausanne)

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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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
Date of revision:
Handle: RePEc:iza:izadps:dp7100
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  1. Carneiro, Pedro & Loken, Katrine Vellesen & Salvanes, Kjell G., 2010. "A Flying Start? Long Term Consequences of Maternal Time Investments in Children During Their First Year of Life," IZA Discussion Papers 5362, Institute for the Study of Labor (IZA).
  2. 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.
  3. 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.
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  6. Havnes, Tarjei & Mogstad, Magne, 2009. "No Child Left Behind: Universal Child Care and Children’s Long-Run Outcomes," IZA Discussion Papers 4561, Institute for the Study of Labor (IZA).
  7. Pedro Carneiro & James J. Heckman & Edward J. Vytlacil, 2010. "Estimating Marginal Returns to Education," NBER Working Papers 16474, National Bureau of Economic Research, Inc.
  8. J.J. Heckman & E.E. Leamer (ed.), 2007. "Handbook of Econometrics," Handbook of Econometrics, Elsevier, edition 1, volume 6, number 6b, January.
  9. Black, Sandra & Devereux, Paul J. & Løken, Katrine & Salvanes, Kjell G, 2012. "Care or Cash? The Effect of Child Care Subsidies on Student Performance," CEPR Discussion Papers 8981, C.E.P.R. Discussion Papers.
  10. Gonzalez, Libertad, 2011. "The Effects of a Universal Child Benefit," IZA Discussion Papers 5994, Institute for the Study of Labor (IZA).
  11. Dahl, Gordon B. & Lochner, Lance John, 2012. "The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit," IZA Discussion Papers 6613, Institute for the Study of Labor (IZA).
  12. 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).
  13. 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.
  14. 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.
  15. Samuel Berlinski & Sebastian Galiani & Paul Gertler, 2006. "The Effect of Pre-Primary Education on Primary School Performance," William Davidson Institute Working Papers Series wp838, William Davidson Institute at the University of Michigan.
  16. 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.
  17. Christopher J. Ruhm, 2000. "Parental Employment and Child Cognitive Development," NBER Working Papers 7666, National Bureau of Economic Research, Inc.
  18. Rasmussen, Astrid Würtz, 2010. "Increasing the length of parents' birth-related leave: The effect on children's long-term educational outcomes," Labour Economics, Elsevier, vol. 17(1), pages 91-100, January.
  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. 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.
  21. Gordon B. Dahl & Lance Lochner, 2005. "The Impact of Family Income on Child Achievement," NBER Working Papers 11279, National Bureau of Economic Research, Inc.
  22. J.J. Heckman & E.E. Leamer (ed.), 2007. "Handbook of Econometrics," Handbook of Econometrics, Elsevier, edition 1, volume 6, number 6a, January.
  23. Edward Vytlacil, 2002. "Independence, Monotonicity, and Latent Index Models: An Equivalence Result," Econometrica, Econometric Society, vol. 70(1), pages 331-341, January.
  24. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP) – Scope, Evolution and Enhancements," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(1), pages 139-169.
  25. Michael Baker & Kevin Milligan, 2015. "Maternity leave and children’s cognitive and behavioral development," Journal of Population Economics, Springer, vol. 28(2), pages 373-391, April.
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