Impacts of universal early education on children's outcomes

Abstract

Early childhood education is high on the policy agenda in many countries, with growing interest in making subsidized child care universally accessible to children from all backgrounds. Proponents see universal early education as an equitable means to promote child development and support parental employment, but the costs are high and may exceed the benefits for advantaged children. This thesis reviews empirical economics literature aiming to estimate causal impacts of universal child care programs on children’s outcomes.

Findings from programs in the United States, Canada, Norway, Denmark, and Germany indicate that universal child care can substantially affect children’s development and long-term socioeconomic success, either in the positive or negative direction. Significant results are found for behavioral and cognitive development, health, educational attainment, earnings, and crime. Variation in the effects across programs could be explained by differences in children’s background characteristics, in program type and quality, and in the counterfactual modes of care. Overall, universal early education appears to benefit disadvantaged children the most, pointing to its potentially equalizing role. Moreover, high-quality center-based care appears to show greater promise in improving children’s long-run prospects than family day care, especially when it displaces informal non-parental care as opposed to home care.