Can't buy mommy's love? Universal childcare and children's long-term cognitive development

Felfe, Christina ; Nollenberger, Natalia ; Rodríguez-Planas, Núria

In: Journal of Population Economics, 2015, vol. 28, no. 2, p. 393-422

Add to personal list
    Summary
    What happens to children's long-run cognitive development when introducing universal high-quality childcare for 3-year-olds mainly crowds out family care? To answer this question, we take advantage of a sizeable expansion of publicly subsidized full-time high-quality childcare for 3-year-olds in Spain in the early 1990s. Identification relies on variation in the initial speed of the expansion of childcare slots across states. Using a difference-in-difference approach, we find strong evidence for sizeable improvements in children's reading skills at age 15 (0.15 standard deviation) and weak evidence for a reduction in grade retentions during primary school (2.5 percentage points). The effects are driven by girls and disadvantaged children.