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Long Run Effects of Universal Childcare on Personality Traits

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  • Maximilian Bach
  • Josefine Koebe
  • Frauke H. Peter

Abstract

Although universal childcare has become an essential tool to support child development, few economic studies analyze its effects on non-cognitive skills and little is known about causal effects on these skills in the long run. In this paper we go beyond short run analyses and examine the long run effects of one additional year of universal childcare on students’ personality traits in adolescence. We focus on personality traits as part of their non-cognitive skills set and as important predictors of later educational achievements. As of 1996, a legal entitlement to universal childcare applied to children of three years and older in Germany. However, severe shortages in the former-West meant that many children could not get a childcare place and had to wait a full year until the next entry date. Using data from the National Educational Panel Study (NEPS) we estimate effects of one additional year of childcare by exploiting geographical variation in the timing of childcare entry arising from local supply constraints. We find that an earlier entry in universal childcare increases extroversion in adolescence, which has been shown to be associated with favorable labor market outcomes.

Suggested Citation

  • Maximilian Bach & Josefine Koebe & Frauke H. Peter, 2019. "Long Run Effects of Universal Childcare on Personality Traits," Discussion Papers of DIW Berlin 1815, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp1815
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    7. Gambaro, Ludovica & Neidhöfer, Guido & Spiess, C. Katharina, 2021. "The effect of early childhood education and care services on the integration of refugee families," Labour Economics, Elsevier, vol. 72(C).
    8. Barschkett, Mara & Spieß, C. Katharina & Ziege, Elena, 2021. "Intergenerational Effects of Grandparental Care on Children and Parents," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242397, Verein für Socialpolitik / German Economic Association.

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    More about this item

    Keywords

    early childcare; non-cognitive skills; personality traits;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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