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Care or Cash? The Effect of Child Care Subsidies on Student Performance

By fabi

The study by Black et al. explores the impact of childcare subsidies on student performance in Norway, utilizing a unique pricing discontinuity for analytical leverage. Despite minimal influence on childcare utilization and parental employment, the research uncovers a notable positive effect on children’s academic outcomes in junior high. This suggests that the financial relief provided by subsidies might enhance children’s educational performance indirectly, possibly through improved household economic conditions or other non-observed factors.

Black, S.E., et al. (2012). “Care or Cash? The Effect of Child Care Subsidies on Student Performance.” Institute for the Study of Labor (IZA). Working Paper No. 6541.