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What can child care do for human capital?

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Abstract

This study reviews the evidence on the possible contribution that a publicly supported child care program could make to the stock of human capital that future generations will bring into the nation's labor force, focusing on the development of children most at risk of future poverty and dependency.

The analysis first discusses the potential benefits to individuals, and to society at large, of increased human capital investment. Next, evidence is reviewed on how pre-school programs have affected educational attainment. The link between educational attainment and earning capacity is then examined using evidence drawn from census surveys as well as a limited amount from longitudinal studies of pre-school alumni. In conclusion the evidence supports the claim that investment in child care, incorporating tested developmental components, can yield net benefits to society by enhancing the human capital of upcoming generations.

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Donovan, S., Watts, H. What can child care do for human capital?. Popul Res Policy Rev 9, 5–23 (1990). https://doi.org/10.1007/BF00124899

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