cite: Hojman2019
author: Hojman, A., & López Bóo, F.
year: 2019
title: Cost-Effective Public Daycare in a Low-Income Economy Benefits Children and Mothers
publisher: Inter-American Development Bank
uri: https://doi.org/10.18235/0001849
pubtype: working paper
discipline: development

country: Nicaragua
period: 2013-2015
maxlength: 24
targeting: implicit
group: poor mothers
data: baseline survey and 12-month follow-up survey

design: experimental
method: RCT; instrumental variable; marginal treatment effects
sample: 1442
unit: individual
representativeness: subnational, urban
causal: 1 # 0 correlation / 1 causal

theory:
limitations: effect on employment is insignificant with IV on randomization alone; relatively small overall sample
observation:
  - intervention: subsidy (childcare)
    institutional: 0
    structural: 1
    agency: 1
    inequality: gender; generational; income
    type: 1 # 0 vertical / 1 horizontal
    indicator: 0 # 0 absolute / 1 relative
    measures: employment
    findings: free childcare significantly increases work participation of mothers (14ppts); increases human capital of children
    channels: subsidy removes associated childcare costs (fewer childcare hours)
    direction: 1 # 0 neg / 1 pos
    significance: 2 # 0 nsg / 1 mfg / 2 cig

notes:
annotation: |
  An experimental study looking at the effects of providing free childcare for poor urban mothers in Nicaragua under the 'Programo Urbano', looking at the effects on inequality for mothers and children.
  It finds that providing free childcare for young children of poor mothers significantly increases the employment probability of the mothers (14ppts) independently of the childcare quality.
  It also finds significantly positive impacts on the human capital of the children, though dependent on the quality of childcare facilities.
  This suggests childcare costs being removed through a quasi-subsidy reducing the required childcare time burden on mothers, increasing parental agency and employment choices.
  Some limitations to the study include a relatively small overall sample size, as well as employment effects becoming insignificant when the effect is measured on randomization alone (without an additional instrumental variable).