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Does Early Child Care Affect Children's Development?

Author

Listed:
  • Lalive, Rafael
  • Felfe, Christina
Abstract
We study how early child care (ECC) affects children's development in a marginal treatment effect framework that allows for rich forms of observed and unobserved effect heterogeneity. Exploiting a reform in Germany that induced school districts to expand ECC at different points in time, we find strong but diverging effects on children's motor and socio-emotional skills. Children who were most likely to attend ECC benefit in terms of their motor skill development. Children who were least likely to attend ECC gain in terms of their socio-emotional skill development, especially boys and children from disadvantaged families, such as those with low education or migration backgrounds. Simulating expansions of ECC, we find that a moderate expansion fosters motor skills for all children and language skills for boys and immigrant children. A progressive expansion of ECC improves all children's socio-emotional development but neither their motor skills nor their language skills.

Suggested Citation

  • Lalive, Rafael & Felfe, Christina, 2018. "Does Early Child Care Affect Children's Development?," CEPR Discussion Papers 12675, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:12675
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    More about this item

    Keywords

    Early child care; Child development; Marginal treatment effects; Rationing;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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