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Early Childhood Care and Cognitive Development

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  • Juan Chaparro
  • Aaron Sojourner
  • Matthew J. Wiswall

Abstract

This paper combines multiple sources of information on early childhood development in a unified model for analysis of a wide range of early childhood policy interventions. We develop a model of child care in which households decide both the quantities and qualities of maternal and non-maternal care along with maternal labor supply. The model introduces a novel parenting-effort channel, whereby child care subsidies that permit less parenting may enable better parenting. To estimate the model, we combine observational data with experimental data from the Infant Health and Development Program (IHDP) which randomly assigned free child care when the child was 1 and 2 years old. We estimate a cognitive skill production function and household preferences, giving insight into mechanisms driving the ex post heterogeneous effects of the IHDP intervention, accounting for alternative care substitutes available to the control group and spillovers of the child care offer across the household's decisions. We also estimate ex ante effects of counterfactual policies such as an offer of lower-quality care, requiring a co-pay for subsidized care, raising the maternal wage offer, or a cash transfer. Finally, we use the model to rationalize existing evidence from outside the US on the effects of universal child care programs.

Suggested Citation

  • Juan Chaparro & Aaron Sojourner & Matthew J. Wiswall, 2020. "Early Childhood Care and Cognitive Development," NBER Working Papers 26813, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:26813
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    Cited by:

    1. Agostinelli, Francesco & Avitabile, Ciro & Bobba, Matteo, 2021. "Enhancing Human Capital in Children: A Case Study on Scaling," TSE Working Papers 21-1196, Toulouse School of Economics (TSE), revised Oct 2023.
    2. Jorge Luis García & James J. Heckman, 2023. "Parenting Promotes Social Mobility Within and Across Generations," Annual Review of Economics, Annual Reviews, vol. 15(1), pages 349-388, September.
    3. Daniela Del Boca & Enrica Maria Martino & Chiara Pronzato, 2022. "Non cognitive skills and childcare attendance," Review of Economics of the Household, Springer, vol. 20(4), pages 1059-1085, December.
    4. Agostinelli, Francesco & Avitabile, Ciro & Bobba, Matteo, 2021. "Enhancing Human Capital at Scale," IZA Discussion Papers 14192, Institute of Labor Economics (IZA).
    5. Miriam Gensowski & Rasmus Landersø & Philip Dale & Anders Højen & Laura Justice & Dorthe Bleses, 2024. "Public and Parental Investments and Children’s Skill Formation," Working Papers 2024-011, Human Capital and Economic Opportunity Working Group.
    6. Sarah Flood & Joel McMurry & Aaron Sojourner & Matthew Wiswall, 2022. "Inequality in Early Care Experienced by US Children," Journal of Economic Perspectives, American Economic Association, vol. 36(2), pages 199-222, Spring.
    7. Wu, Wenjie & Zhe, Yang & Kim, Jun Hyung & Yue, Ai, 2023. "Effects of Early Childhood Climate on Cognitive Development and Home Environment," IZA Discussion Papers 16017, Institute of Labor Economics (IZA).
    8. Gensowski, Miriam & Landersø, Rasmus & Dale, Philip & Hojen, Anders & Justice, Laura & Bleses, Dorthe, 2024. "Public and Parental Investments, and Children's Skill Formation," IZA Discussion Papers 16956, Institute of Labor Economics (IZA).
    9. Sebastian Galiani & Juan Pantano, 2021. "Structural Models: Inception and Frontier," NBER Working Papers 28698, National Bureau of Economic Research, Inc.
    10. Ali, Umair & Brown, Jessica H. & Herbst, Chris M., 2022. "Secure Communities as Immigration Enforcement: How Secure Is the Child Care Market?," IZA Discussion Papers 15821, Institute of Labor Economics (IZA).
    11. Herbst, Chris M., 2024. "Effects of Center-Based Child Care on Disadvantaged Children: Evidence from a Randomized Research Design," IZA Discussion Papers 17430, Institute of Labor Economics (IZA).
    12. Nabanita Datta Gupta & Jonas Jessen & C. Katharina Spiess, 2023. "Maternal Life Satisfaction and Child Development from Toddlerhood to Adolescence," SOEPpapers on Multidisciplinary Panel Data Research 1189, DIW Berlin, The German Socio-Economic Panel (SOEP).
    13. Dougan, William & García, Jorge Luis & Polovnikov, Illia, 2023. "High-Quality Early-Childhood Education at Scale: Evidence from a Multisite Randomized Trial," IZA Discussion Papers 16442, Institute of Labor Economics (IZA).
    14. Elizabeth M. Caucutt & Lance Lochner & Joseph Mullins & Youngmin Park, 2020. "Child Skill Production: Accounting for Parental and Market-Based Time and Goods Investments," NBER Working Papers 27838, National Bureau of Economic Research, Inc.
    15. David M. Blau, 2022. "The Case For Targeted Preschool And Childcare Subsidies," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 41(3), pages 929-937, June.
    16. Miriam Gensowski & Miriam Gensowski & Philip Dale & Anders Hojen & Laura Justice & Dorthe Bleses, 2024. "Public and Parental Investments, and Children’s Skill Formation," RF Berlin - CReAM Discussion Paper Series 2411, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    17. Orazio Attanasio & Sarah Cattan & Costas Meghir, 2021. "Early Childhood Development, Human Capital and Poverty," NBER Working Papers 29362, National Bureau of Economic Research, Inc.
    18. Lee, Siha & Liu, Sitian, 2024. "Fertility incentives in Canada: A cohort analysis," CLEF Working Paper Series 75, Canadian Labour Economics Forum (CLEF), University of Waterloo.

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    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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