Child-care support, early childhood education, and schooling

  • What is the economic value of literacy and numeracy?

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

    Anna Vignoles, January 2016
    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.
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  • The role of preschool in reducing inequality

    Preschool improves child outcomes, especially for disadvantaged children

    Jane Waldfogel, December 2015
    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.
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  • The role of cognitive and socio-emotional skills in labor markets

    Cognitive skills are more relevant in explaining earnings, socio-emotional skills in determining labor supply and schooling

    Pablo AcostaNoël Muller, October 2018
    Common proxies, such as years of education, have been shown to be ineffective at capturing cross-country differences in skills acquisition, as well as the role they play in the labor market. A large body of research shows that direct measures of skills, in particular cognitive and socio-emotional ones, provide more adequate estimations of individuals’ differences in potential productive capacity than the quantity of education they receive. Evidence shows that cognitive skills in particular are quite relevant to explain wages, while socio-emotional skills are more associated with labor force and education participation decisions.
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  • The impacts of shortening secondary school duration

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

    Stephan L. Thomsen, July 2015
    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.
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  • 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

    Teny Maghakian Shapiro, August 2015
    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.
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  • 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

    Phillip B. Levine, July 2014
    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.
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  • Skills or jobs: Which comes first?

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

    Jesko Hentschel, February 2017
    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.
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  • Parental leave and maternal labor supply

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

    Astrid Kunze, July 2016
    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.
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  • Parental employment and children’s academic achievement

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

    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.
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  • Measuring the cost of children

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

    Olivier Donni, March 2015
    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.
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