Maira Emy Reimao, University of California, Davis
Daycare, Durables, and Credit Constraints: Evidence from Rio de Janeiro
Date and Location
Monday, January 26, 2015, 4:10 PM - 5:30 PM
ARE Conference Room, 2102
Social Sciences and Humanities
Abstract
The primary goals of public daycare programs are usually to increase female labor force participation and, consequently, incomes and to support child development. Using panel data from Rio de Janeiro in the context of randomized selection for daycare, we first find that access to daycare increases household income in the short-run but that this effect largely dissipates once all children are age-eligible for preschool or school. Through a switching regression model, however, we show that, particularly for constrained households, this temporary boost in income translates into greater ownership of durable goods even in the medium-term. As the ownership of durable goods has positive implications for child health and education, we find (an additional) positive effect of daycare on child development: for credit constrained households, temporary increases in income provided by access to daycare can improve children's living environments during crucial development years.
Contact Us
2116 Social Sciences and HumanitiesUniversity of California, Davis
One Shields Avenue
Davis, CA 95616
Main Office: 530-752-1515
Student Advising Services: 530-754-9536
DeLoach Conference Room: 530-752-2916
Main Conference Room: 530-754-1850