The Impact of the Business Cycle on Kindergarten Enrollment

Abstract:     
For some 5-year-olds, delayed kindergarten enrollment may result in long-term academic benefits. Although waiting an additional year allows for further development prior to the start of formal education, the economic costs of the next best alternatives can be significant. This study examines the impact of the business cycle on the timing of enrollment. I find that during economic downturns kindergarten enrollment increases. To explore a potential mechanism through which this effect may arise, I propose an instrumental variables approach to identify the causal effect of fluctuations in household resources due to the business cycle on the timing of kindergarten enrollment.

Keywords: Demand for Schooling, Educational Economics, Human Capital

JEL Classifications: I20, I22, J24

Working Paper Series