Scandinavian Working Papers in Economics

Memorandum,
Oslo University, Department of Economics

No 23/2009: No Child Left Behind: Universal Child Care and Children's Long-Run Outcomes

Tarjei Havnes () and Magne Mogstad ()
Additional contact information
Tarjei Havnes: Dept. of Economics, University of Oslo, Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Magne Mogstad: Statistics Norway, Postal: Postal: Pb 8131 Dep, , NO-0033 Oslo, Visit: Kongens gt. 6, Norway

Abstract: There is a heated debate in the US, Canada and many European countries about introducing universally accessible child care. However, studies on universal child care and child development are scarce and only consider short-run outcomes. We analyze the introduction of universal child care in Norway, addressing the impact on children’s long-run outcomes. Our precise and robust difference-in-difference estimates show that child care had strong positive effects on children’s educational attainment and labor market participation, and also reduced welfare dependency. Subsample analysis indicates that children with low educated mothers and girls benefit the most from child care.

Keywords: universal child care; child development; long-run outcomes

JEL-codes: H40; I28; J13

60 pages, September 30, 2009

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Fortchoming as
Tarjei Havnes and Magne Mogstad, 'No Child Left Behind: Subsidized Child Care and Children's Long-Run Outcomes', American Economic Journal: Economic Policy

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