Child-care support, early childhood education, and schooling

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Do youth mentoring programs change the perspectives and improve the life opportunities of at-risk youth?

While most effects are positive, they tend to be modest and fade over time—in addition, some mentoring programs can backfire

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by Núria Rodríguez-Planas

Mentoring programs such as Big Brothers Big Sisters of America have been providing positive role models and building social skills for more than a century. However, most formal mentoring programs are relatively novel and researchers have only recently begun to rigorously evaluate their impact on changing at-risk youth’s perspectives and providing opportunities for them to achieve better life outcomes. While a variety of mentoring and counseling programs have emerged around the world in recent years, knowledge of their effectiveness remains incomplete.

Teenage childbearing and labor market implications for women

Teenage childbearing is less a cause of inferior labor market outcomes for women than a marker of other social problems in a girl’s life

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by Phillip B. Levine

It is not difficult to find statistics showing that 
teenage childbearing is associated with poor labor market outcomes, but why is this the case? Does having a child as a teenager genuinely affect a 
woman’s economic potential—or is it simply a marker of problems she might already be facing as a result of her social and family background? The answer 
to this question has important implications for 
policy measures that could be taken to improve women’s lives.

Childcare subsidy policy: What it can and cannot accomplish

What are the implications of childcare subsidies for care quality, family well-being, and child development?

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by Erdal Tekin

Most public expenditure on childcare in the US 
is made through a federal program, the Child Care and Development Fund (CCDF), established as 
part of landmark welfare reform legislation in 1996. The main goal of the reform was to increase employment and reduce welfare dependence among low-income families. Childcare subsidies have been effective in enabling parents to work, but apparently at some cost to the well-being of parents and children.

Does minimum age of employment regulation reduce child labor?

The global fight against child labor might be better served by focusing less on existing laws and more on implementation and enforcement

10.15185/izawol.73 73 Edmonds, E

by Eric V. Edmonds

Regulation of the minimum age of employment is the dominant tool used to combat child labor globally. If enforced, these regulations can change the types of work in which children participate, but minimum age regulations are not a useful tool to promote education. Despite their nearly universal adoption, recent research for 59 developing countries finds little evidence that these regulations influence child time allocation in a meaningful way. Going forward, coordinating compulsory schooling laws and minimum age of employment regulations may help maximize the joint influence of these regulations on child time allocation, but these regulations should not be the focus of the global fight against child labor.

Measuring the cost of children

Knowing the real cost of children is important for crafting better
 economic policy

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by Olivier Donni

The cost of children is a critical parameter used in determining many economic policies. For instance, correctly setting the tax deduction for families with children requires assessing the true household cost of children. Evaluating child poverty at the individual level requires making a clear distinction between the share of family resources received by children and that received by parents. The standard ad hoc measures (equivalence scales) used in official publications to measure the cost of children are arbitrary and are not informed by any economic theory. However, economists have developed methods that are grounded in economic theory and can replace ad hoc measures.

Childcare choices and child development

Generous parental leave and affordable, high-quality childcare can foster children’s abilities

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by Daniela Del Boca

The economic and psychological literatures have demonstrated that early investments (private and public) in children can significantly increase cognitive outcomes in the short and long term and contribute to success later in life. One of the most important of these inputs is maternal time. Women’s participation in the labor market has risen rapidly in most countries, implying that mothers spend less time with their children and that families rely more on external sources of childcare. This trend has raised concerns, and an intense debate in several countries has focused on the effectiveness of childcare policies.

The impacts of shortening secondary school duration

Shortening secondary school duration may increase the skilled workforce in aging societies

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by Stephan L. Thomsen

The main goal of secondary school education in developed countries is to prepare students for higher education and the labor market. That demands high investments in study duration and specialized fields to meet rising skill requirements. However, these demands for more education are in opposition to calls for early entry to the labor market, to lengthen working lives to meet the rising costs associated with an aging population and to enable the intergenerational transfer of skills. One way to lengthen working lives is to shorten the duration of secondary school, an option recently implemented in Canada and Germany. The empirical evidence shows mixed effects.

The educational effects of school start times

Delaying secondary school start times can be a cost-effective policy to improve students’ grades and test scores

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by Teny Maghakian Shapiro

The combination of changing sleep patterns in adolescence and early school start times leaves secondary school classrooms filled with sleep-deprived students. Evidence is growing that having adolescents start school later in the morning improves grades and emotional well-being, and even reduces car accidents. Opponents cite costly adjustments to bussing schedules and decreased time after school for jobs, sports, or other activities as reasons to retain the status quo. While changing school start times is not a costless policy, it is one of the easiest to implement and least expensive ways of improving academic achievement.

Class size: Does it matter for student achievement?

Smaller classes are often associated with increased achievement, but the evidence is far from universal

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by Christopher Jepsen

Numerous economic studies have considered the relationship between class size and student achievement, the majority of which have focused on elementary schools in the US and Europe. While the general finding is that smaller classes are associated with increased student achievement, a few high-quality studies find no relationship. Further, empirical research on the costs and benefits of smaller classes concludes that other education policies, such as tutoring, early childhood programs, or improving teacher quality would be better investments.

Immigrants in the classroom and effects on native children

Having immigrant children in the classroom may sometimes, but not always, harm educational outcomes of native children

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by Peter Jensen

Many countries are experiencing increasing inflows of immigrant students. This raises concerns that having a large share of students for whom the host country language is not their first language may have detrimental effects on the educational outcomes of native children. However, the evidence is mixed, with some studies finding negative effects, and others finding no effects. Whether higher concentrations of immigrant students have an effect on native students differs across countries according to factors such as organization of the school system and immigrants’ socio-economic background.

The role of preschool in reducing inequality

Preschool improves child outcomes, especially for disadvantaged children

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by Jane Waldfogel

Children from disadvantaged families have lower levels of school readiness when they enter school than do children from more advantaged families. Many countries have tried to reduce this inequality through publicly provided preschool. Evidence on the potential of these programs to reduce inequality in child development is now quite strong. Long-term studies of large publicly funded programs in Europe and Latin America, and newer studies on state and local prekindergarten programs implemented more recently in the US, find that the programs do improve outcomes for young children, particularly for those from disadvantaged families.

What is the economic value of literacy and numeracy?

Basic skills in literacy and numeracy are essential for success in the labor market

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by Anna Vignoles

Even in OECD countries, where an increasing proportion of the workforce has a university degree, the value of basic skills in literacy and numeracy remains high. Indeed, in some countries the return for such skills, in the form of higher wages, is sufficiently large to suggest that they are in high demand and that there is a relative scarcity. Policymakers need robust evidence in order to devise interventions that genuinely improve basic skills, not just of new school leavers entering the market, but also of the existing workforce. This would lead to significant improvements in the population that achieves a minimum level of literacy and numeracy.

Parental employment and children’s academic achievement

Quality of parental time spent with children is more important than quantity

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by Hannah Schildberg-Hörisch

Female labor market participation rates have increased substantially in many countries over the last decades, especially those of mothers with young children. This trend has triggered an intense debate about its implications for children’s well-being and long-term educational outcomes. The overall effect of maternal and paternal employment on children’s cognitive and educational attainment is not obvious: on the one hand, children may benefit from higher levels of family income, on the other hand, parental employment reduces the amount of time parents spend with their children.

Do childcare policies increase maternal employment?

Subsidized childcare fosters maternal employment, but employment status, childcare quality, and availability matter

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by Daniela Vuri

Women’s labor force participation has rapidly increased in most countries, but mothers still struggle to achieve a satisfactory work−life balance. Childcare allows the primary caregiver, usually the mother, to take time away from childrearing for employment. Family policies that subsidize childcare and increase its availability have different effects on female labor supply across countries. For policymakers to determine how well these policies work, they should consider that policy effectiveness may depend on country-specific pre-reform female employment and earnings, and childcare availability, costs, and quality.

Age at school entry: How old is old enough?

A child’s age at school entry matters, and the implications of policy changes can have long-lasting effects

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by Elizabeth Dhuey

Laws on age at school entry affect student achievement and often change for a number of reasons. Older students are more mature and ready to learn. This can have positive impacts on academic, employment, and earnings outcomes. The costs of holding children back include another year of childcare expenses or income forgone by the caregiver parent. Entering the workforce one year later also has implications for lifetime earnings and remittances to governments. School-entry policies could be a useful tool in increasing student achievement, but the short- and long-term impacts need to be better understood.

Is maternal employment related to childhood obesity?

Institutions and policies affect whether working mothers raise heavier children

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by Wencke Gwozdz

Childhood obesity has been rising steadily in most parts of the world. Popular speculation attributes some of that increase to rising maternal employment. Employed mothers spend less time at home and thus less time with their children, whose diets and physical activity may suffer. Also, children of working mothers may spend more time in the care of others, whose childcare quality may vary substantially. While a majority of US studies support this hypothesis and have clear policy implications, recent studies in other countries are less conclusive, largely because institutional arrangements differ but also because methodologies do.

Can higher education reduce inequality in developing countries?

Expanding higher education might solve rising youth unemployment and widening inequality in Africa

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by Abebe Shimeles

Developing countries often face two well-known structural problems: high youth unemployment and high inequality. In recent decades, policymakers have increased the share of government spending on education in developing countries to address both of these issues. The empirical literature offers mixed results on which type of education is most suitable to improve gainful employment and reduce inequality: is it primary, secondary, or tertiary education? Investigating recent literature on the returns to education in selected developing countries in Africa can help to answer this question.

Parental leave and maternal labor supply

Parental leave increases the family–work balance, but may have negative impacts on mothers’ careers

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by Astrid Kunze

Numerous studies have investigated whether the provision and generosity of parental leave affects the employment and career prospects of women. Parental leave systems typically provide either short unpaid leave mandated by the firm, as in the US, or more generous and universal leave mandated by the government, as in Canada and several European countries. Key economic policy questions include whether, at the macro level, female employment rates have increased due to parental leave policies; and, at the micro level, whether the probability of returning to work and career prospects have increased for mothers after childbirth.

How manipulating test scores affects school accountability and student achievement

Standardized testing can create incentives to manipulate test results and generate misleading indicators for public policy

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by Erich Battistin

Standardized testing has become the accepted means of measuring a school’s quality. However, the associated rise in test-based accountability creates incentives for schools, teachers, and students to manipulate test scores. Illicit behavior may also occur in institutional settings where performance standards are weak. These issues are important because inaccurate measurement of student achievement leads to poor or ineffective policy conclusions. The consequences of mismeasured student achievement for policy conclusions have been documented in many institutional contexts in Europe and North America, and guidelines can be devised for the future.

Do schooling reforms improve long-term health?

It is difficult to find consistent evidence that schooling reforms provide health benefits

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by David Madden

A statistical association between more education and better health outcomes has long been observed, but in the absence of experimental data researchers have struggled to find a causal effect. Schooling reforms such as raising school leaving age, which have been enacted in many countries, can be viewed as a form of natural experiment and provide a possible method of identifying such an effect. However, the balance of evidence so far is that these reforms have had little impact on long-term health. Thus, policymakers should be cautious before anticipating a health effect when introducing reforms of this nature.

Can universal preschool increase the labor supply of mothers?

The success of universal preschool education depends crucially on the policy parameters and specific country context

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by Sarah Cattan

Since the 1970s, many countries have established free or highly subsidized education for all preschool children in the hope of improving children’s learning and socio-economic life chances and encouraging mothers to join the labor force. Evaluations reveal that these policies can increase maternal employment in the short term and may continue to do so even after the child is no longer in preschool by enabling mothers to gain more job skills and increase their attachment to the labor force. However, their effectiveness depends on the policy design, the country context, and the characteristics of mothers of preschoolers.

How important is career information and advice?

Students’ decisions about their education can be, but are not always, improved by providing them with more information

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by Sandra McNally

The quantity and quality of educational investment matter for labor market outcomes such as earnings and employment. Yet, not everyone knows this, and navigating the education system can be extremely complex both for students and their parents. A growing economic literature has begun to test whether interventions designed to improve information about the costs and benefits of education and application processes have an effect on students’ behavior. So far, findings have been mixed, although the positive findings arising from some very carefully targeted interventions give cause for hope.

Skills or jobs: Which comes first?

Jobs require skills, but they also build skills and create a demand for them

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by Jesko Hentschel

Skills are widely regarded as being necessary for boosting productivity, stimulating innovation, and creating new jobs, while skill mismatches are often cited as being responsible for a lack of dynamism in the labor market. However, heavy investments in technical and vocational training programs are seldom a “silver bullet.” Recent evidence on skill building not only points to the core importance of foundational skills (both cognitive and social) for success in the labor market, but also emphasizes how jobs themselves can lead to learning and shape social competencies that, in turn, ignite innovation and create more jobs.