Early years policy

We analyze the role that early years policy might play in narrowing educational attainment gaps. We begin by examining gaps in school readiness between low-, middle-, and high-income children, drawing on data from new large and nationally representative birth cohort studies in the USA and UK. We find that sizable income-related gaps in school readiness are present in both countries before children enter school and then decompose these gaps to identify the factors that account for the poorer scores of low-income children. We then consider what role early years policy could play in tackling these gaps, drawing on the best available evidence to identify promising programs

The Effects of Early Maternal Employment on Child Development in the UK

This paper uses data from the ALSPAC cohort of 12000 births to explore the effects of early maternal employment on child cognitive and behavioural outcomes. The results indicate that full time maternal employment begun in the 18 months after childbirth has small negative effects on later child outcomes. Part-time work and work begun later than 18 months, however, do not seem to have any adverse consequences. We explore the issue of whether our results are biased by unobserved heterogeneity but find no evidence that our results are sensitive to the inclusion of controls for a wide range of background factors. We conduct sub-group analyses to investigate whether certain groups may be more vulnerable to the effects of early full time maternal employment than others. This paper also explores the mechanisms linking maternal employment to children's development. The mechanisms examined relate to the parenting behaviours of the mother and father, breastfeeding behaviour, maternal tiredness and stress, household income and the use of non-maternal childcare. We find that a number of factors work to minimise the effect of mothers' labour market participation on their children. Fathers are significantly more involved in child rearing in households where mothers return to work early and this more equal division of parenting has strongly beneficial effects on later child outcomes. Negative employment effects are concentrated in those families where mothers work full time and also rely on unpaid care by a friend or relative. The use of paid childcare protects children from these negative effects and attendance at a centre-based provider may actually lead to better cognitive outcomes than if the child were at home with a non-working mother.maternal employment, child development

Expenditure Patterns Post-Welfare Reform in the UK: Are Low-Income Families Starting to Catch Up?

In this paper we provide evidence on how the UK government’s welfare reforms since 1998 have affected the material well-being of children in low-income families. We examine changes in expenditure patterns and ownership of durable goods for low- and higher-income families between the pre-reform period (1995-1998) and the post-reform period (2000-2003), using data from the Family Expenditure Survey. The methodological approach is a difference-in-difference-in-difference analysis that exploits the fact that age variation in the reforms favoured low-income families over higher-income ones and families with children age under 11 over those with older children. We find that low-income families with children are catching up to more affluent families, in their expenditures and their possession of durable goods. Moreover, expenditures on child-related items are increasing faster than expenditures on other items.child poverty; family expenditures; welfare reform; difference-in-difference

Expenditure Patterns Post-Welfare Reform in the UK: Are low-income families starting to catch up?

In this paper we provide evidence on how the UK government's welfare reforms since 1998 have affected the material well-being of children in low-income families. We examine changes in expenditure patterns and ownership of durable goods for low- and higher-income families between the pre-reform period (1995-1998) and the post-reform period (2000-2003), using data from the Family Expenditure Survey. The methodological approach is a difference-in-difference-in-difference analysis that exploits the fact that age variation in the reforms favoured low-income families over higher-income ones and families with children age under 11 over those with older children. We find that low-income families with children are catching up to more affluent families, in their expenditures and their possession of durable goods. Moreover, expenditures on child-related items are increasing faster than expenditures on other items.child poverty, family expenditures, welfare reform, difference-in-difference

Understanding the relationship between parental income and multiple child outcomes: A decomposition analysis

In this paper we explore the association between family income and children's cognitive ability (IQ and school performance), socio-emotional outcomes (self esteem, locus of control and behavioural problems) and physical health (risk of obesity). We develop a decomposition technique that allows us to compare the relative importance of the adverse family characteristics and home environments of low income children in accounting for different outcomes. Using rich cohort data from the UK we find that poor children are disadvantaged at age 7 to 9 across the full spectrum of outcomes, the gradient being strongest for cognitive outcomes and weakest for physical health. We find that some aspects of environment appear to be associated with the full range of outcomes - for example, maternal smoking and breastfeeding, child nutrition, parental psychological functioning. We also find some some aspects of the environment of higher income households hinder child development. We conclude that many aspects of growing up in poverty are harmful to children's development, and that narrowly-targeted interventions are unlikely to have a significant impact on intergenerational mobility.child outcomes, income, pathways, mediating factors

Understanding the Relationship between Parental Income and Multiple Child Outcomes: a decomposition analysis

In this paper we explore the association between family income and children’s cognitive ability (IQ and school performance), socio-emotional outcomes (self esteem, locus of control and behavioural problems) and physical health (risk of obesity). We develop a decomposition technique that allows us to compare the relative importance of the adverse family characteristics and home environments of low income children in accounting for different outcomes. Using rich cohort data from the UK we find that poor children are disadvantaged at age 7 to 9 across the full spectrum of outcomes, the gradient being strongest for cognitive outcomes and weakest for physical health. We find that some aspects of environment appear to be associated with the full range of outcomes - for example, maternal smoking and breastfeeding, child nutrition, parental psychological functioning. We also find some some aspects of the environment of higher income households hinder child development. We conclude that many aspects of growing up in poverty are harmful to children’s development, and that narrowly-targeted interventions are unlikely to have a significant impact on intergenerational mobility.Child outcomes, income, pathways, mediating factors

Explaining the Gender Division of Labour:The Role of the Gender Wage Gap

This paper draws on the economics literature on market labour supply and the sociology literature on domestic labour supply. Each literature has explored the factors underlying male specialisation in market work and female specialisation in domestic work, but has tended to focus on labour supply to one sector (market or domestic) in isolation from supply to the other. This paper uses data from the UK Time Use Survey 2000 on a matched sample of spouses to estimate household labour supplies to both sectors as a function of the spouses’ earnings capacities. The estimation procedure is a simulated maximum likelihood technique that allows for unobserved household-level random effects. In order to allow for non-participation, we estimate an available market wage for both the employed and non-employed individuals in the sample by combining the time use data with wage data from the Labour Force Survey. We use the estimated parameters from the labour supply equations to conduct a decomposition of two measures of the degree of gender specialisation within the household – the average gender gaps in weekly hours of market and domestic work. Our method allows us to decompose these gaps into a component that can be explained by spousal differences in earnings capacity and a residual gender effect. Our results suggest that the roles played by spouses within the household are responsive to economic incentives, but that the way in which men and women respond to those incentives is highly asymmetric. We conclude that a gender-neutral model of family decision-making cannot capture important features of the processes by which family members allocate time to different uses.gender wage gap, household labour, time allocation, division of labour

Fathers, Childcare and Children’s Readiness to Learn

This study explores the effects of exposure to regular paternal childcare (without the mother present) in the first three years of life on the academic and social capabilities of boys and girls when they begin school. Innovations in this paper are the use of data on children’s early attributes to explore the issue of reverse causation, and a bootstrap technique that allows us to estimate standard errors on the change in the paternal care coefficient when additional groups of controls are included. The rich nature of our data (the ALSPAC UK cohort) allows us to eliminate many potential sources of bias in the estimates, and identify effects that are robust to numerous different specifications. Fathers are the most widely used form of non-maternal childcare in this period. We find that the effects of paternal childcare, relative to maternal-only parental care, depend on the gender of the child, the age at which care occurred and the weekly hours of paternal care. We find evidence that children’s social development may be enhanced by time alone with fathers, but that boys seem to suffer academically from long hours of paternal care when they are toddlers. Our findings show that the changing social roles of mothers and fathers may have implications for child as well as adult well being.fathers, childcare, school readiness

Public Policies and Women's Employment after Childbearing

This paper examines how the public policy environment in the United States affects work by new mothers following childbirth. We examine four types of policies that vary across states and affect the budget constraint in different ways. The policy environment has important effects, particularly for less advantaged mothers. There is a potential conflict between policies aiming to increase maternal employment and those maximizing the choices available to families with young children. However, this tradeoff is not absolute since some choice-increasing policies (generous child care subsidies and state parental leave laws) foster both choice and higher levels of employment.public policies, maternal employment, childbearing

Maternity Rights and Mothers' Return to Work

In this paper we use the ALSPAC cohort of 12,000 births to examine the effect of maternity rights on mothers' post-birth return to employment decisions. We aim to disentangle the effects of the terms of maternity rights entitlements from the effects of other factors (such as household wealth, personal preferences and labour market opportunities) that influence the timing of a mother's return to work. We adopt a discrete hazard model with instrumental variables to estimate a counterfactual of what mothers with rights would have done in the absence of this legislation. Mothers with rights have an underlying (but unobserved) stronger attachment to the labour market which prompts earlier return than on average. Nevertheless, even when we take this into account we find a substantial impact of maternity rights on behaviour. Having rights induces around 20 per cent more women to return to their previous job before 7 months than would otherwise be the case. Women from lower skilled groups return disproportionately at the date at which maternity pay expires, while managerial and professional women tend to return at the expiry of unpaid leave.government policy, welfare, child care, labor supply