The impact of non-parental child care on child development

Evidence from the summer participation "dip"

Research output: Contribution to journalArticle

19 Citations (Scopus)

Abstract

Although a large literature examines the effect of non-parental child care on preschool-aged children's cognitive development, few studies deal convincingly with the potential endogeneity of child care choices. Using a panel of infants and toddlers from the Birth cohort of the Early Childhood Longitudinal Study (ECLS-B), this paper attempts to provide causal estimates by leveraging heretofore unrecognized seasonal variation in child care participation. Child assessments in the ECLS-B were conducted on a rolling basis throughout the year, and I use the participation "dip" among those assessed during the summer as the basis for an instrumental variable. The summer participation dip is likely to be exogenous because ECLS-B administrators strictly controlled the mechanism by which children were assigned to assessment dates. The OLS results show that children utilizing non-parental arrangements score higher on tests of cognitive ability, a finding that holds after accounting for individual fixed effects. However, the instrumental variables estimates point to sizeable negative effects of non-parental care. The adverse effects are driven by participation in formal settings, and, contrary to previous research, I find that disadvantaged children do not benefit from exposure to non-parental care.

Original languageEnglish (US)
Pages (from-to)86-105
Number of pages20
JournalJournal of Public Economics
Volume105
DOIs
StatePublished - 2013

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Child development
Child care
Participation
Instrumental variables
Birth cohort
Early childhood
Endogeneity
Seasonal variation
Longitudinal study
Fixed effects
Cognitive development
Cognitive ability

Keywords

  • Child development
  • Maternal employment
  • Non-parental child care

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance

Cite this

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abstract = "Although a large literature examines the effect of non-parental child care on preschool-aged children's cognitive development, few studies deal convincingly with the potential endogeneity of child care choices. Using a panel of infants and toddlers from the Birth cohort of the Early Childhood Longitudinal Study (ECLS-B), this paper attempts to provide causal estimates by leveraging heretofore unrecognized seasonal variation in child care participation. Child assessments in the ECLS-B were conducted on a rolling basis throughout the year, and I use the participation {"}dip{"} among those assessed during the summer as the basis for an instrumental variable. The summer participation dip is likely to be exogenous because ECLS-B administrators strictly controlled the mechanism by which children were assigned to assessment dates. The OLS results show that children utilizing non-parental arrangements score higher on tests of cognitive ability, a finding that holds after accounting for individual fixed effects. However, the instrumental variables estimates point to sizeable negative effects of non-parental care. The adverse effects are driven by participation in formal settings, and, contrary to previous research, I find that disadvantaged children do not benefit from exposure to non-parental care.",
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