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No Child Left Behind: Subsidized Child Care and Children's Long-Run Outcomes

Author

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  • Tarjei Havnes
  • Magne Mogstad

Abstract

Many developed countries are currently considering a move toward subsidized, widely accessible child care or preschool. However, studies on how large-scale provision of child care affects child development are scarce, and focused on short-run outcomes. We analyze a large-scale expansion of subsidized child care in Norway, addressing the impact on children's long-run outcomes. Our precise and robust difference-in-differences estimates show that subsidized child care had strong positive effects on children's educational attainment and labor market participation, and also reduced welfare dependency. Subsample analyses indicate that girls and children with low-educated mothers benefit the most from child care. (JEL J13, J16)

Suggested Citation

  • Tarjei Havnes & Magne Mogstad, 2011. "No Child Left Behind: Subsidized Child Care and Children's Long-Run Outcomes," American Economic Journal: Economic Policy, American Economic Association, vol. 3(2), pages 97-129, May.
    • Handle: RePEc:aea:aejpol:v:3:y:2011:i:2:p:97-129
    Note: DOI: 10.1257/pol.3.2.97
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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    1. No Child Left Behind: Subsidized Child Care and Children's Long-Run Outcomes (American Economic Journal: Economic Policy 2011) in ReplicationWiki

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