Understanding Day Care Enrolment Gaps

44 Pages Posted: 17 Jul 2019

See all articles by Jonas Jessen

Jonas Jessen

German Institute for Economic Research (DIW Berlin), Students

Sophia Schmitz

German Institute for Economic Research (DIW Berlin), Students

Sevrin Waights

German Institute for Economic Research (DIW Berlin)

Date Written: July 2019

Abstract

We document day care enrolment gaps by family background for children under 3 in Germany. Research demonstrates that children of less-educated or foreign-born parents benefit most from day care, making it important to understand the causes of such enrolment gaps. Using a unique data set that records both actual and preferred day care usage, we demonstrate that differences in demand cannot fully explain the enrolment gaps. Investigating supply-side factors using quasi-experimental designs, we find that reducing both parental fees and scarcity of places significantly decreases enrolment gaps by parental education but not by parental country of birth. We discuss implications.

Keywords: Child care, Early education, Inequality, Socio-economic status, Discrimination, Synthetic control

JEL Classification: I24, J13

Suggested Citation

Jessen, Jonas and Schmitz, Sophia and Waights, Sevrin, Understanding Day Care Enrolment Gaps (July 2019). DIW Berlin Discussion Paper No. 1808, 2019. Available at SSRN: https://ssrn.com/abstract=3417570

Jonas Jessen (Contact Author)

German Institute for Economic Research (DIW Berlin), Students ( email )

Germany

Sophia Schmitz

German Institute for Economic Research (DIW Berlin), Students ( email )

Germany

Sevrin Waights

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstra├če 58
Berlin, 10117
Germany

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