erola, karhula & kilpi-jakonen: home sweet home? long-term educational outcomes of childcare...

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Home sweet home? Long-term educational outcomes of childcare arrangements in Finland TITA WP2 Meeting, Stockholm 21 st April Aleksi Karhula, Jani Erola & Elina Kilpi- Jakonen University of Turku

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Page 1: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

Home sweet home?Long-term educational outcomes of childcare arrangements in Finland

TITA WP2 Meeting, Stockholm 21st April

Aleksi Karhula, Jani Erola & Elina Kilpi-JakonenUniversity of Turku

Page 2: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

To be published in:

Blossfeld, H.-P., Kulic, N., Skopek, J. & Triventi, M. (eds):

Childcare, Early Education and Social Inequality– A Cross-national Perspective

Cheltenham, UK: Edward Elgar.

Page 3: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

Day care in Finland

● One of the most universal day care systems in the world

● A subjective right to all child under pre-primary age (6yrs)

● Currently does not exclude any subgroups (children of unemployed parents, students etc…)

Page 4: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

The puzzle…

• 40 % + of children in home care• Less than in any other Nordic countries with

less universal right to day care

Page 5: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

Why?

1. Home care allowances (cash for care): government + municipalities

2. Normative claims:

• Families should have freedom to choose (political argument, see Hiilamo & Kangas 2013)

• Children suffer if taken care by someone else than mothers too early (attachment ”theorists”)

Page 6: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

The research questions

o Kids in home care doing better or worse in education than day care kids? (=long term outcomes)

o Differences explained by selection into different child care arrangements by different family backgrounds?

Page 7: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

Pre-school child care arrangements in Finland, I

● Maternity/parental leave 9 months after birth + father leave 54 days

● After that, either home or day careo Often mixed for very small childreno Day care includes: center or family care (80% vs.

20%)

Page 8: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

Pre-school child care arrangements in Finland, II

● Both heavily subsidizedo Day care free for low-income families, max. monthly

cost around 250 € /montho Government home care allowance for first child 343

€ / month until age 3, some municipalities topping● Pre-primary at age 6, free of charge

Page 9: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

Historical background

● Women’s movement in the mid-1960s, employers worried in the late 1960s (1972 the smallest birth cohort since WWII)

● Law on day care in 1973● Subjective right of children introduced in

1990 for kids under 3 yrs, extended to kids under 6 yrs in 1996

● Gov. home care allowances 1991, day care subsidies cover private institutions in 1996

Page 10: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

High quality requirements

● In day care centers: Children under 3 years: 1 teacher / 4 childr., older: 1 teacher / 7 childr.

● Formal teacher qualifications of at last some of the day care center staff required by municipalities (but not by private institutions)

● BUT: Family care: max 4 children but no formal requirements

Page 11: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

In practise

● High quality day care expensive for municipalities (av. 63 € /day in 2012)

● Has lead to municipalities-topped home care allowances (in 2012 max 264€ / child, av. 148 €)

Page 12: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

Children in day care as a percentage of age group

Source: Alila et al 2014, Statistics Finland 2015

Page 13: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

Previous studies

● Not much on child outcomes in Finland● But several in other Nordic countries, e.g.:

o Havnes & Mongstad 2011, 2014 (NO): subsidized day care has positive effects on low-inc. families, negative in high-income

o Esping-Andersen et al 2012 (DEN): subs . day care positive effects on low-income children

o Datta Gupta & Simonsen 2009 (DEN): No difference between home and day care in early cognitive outcomes

Page 14: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

Data

● Administrative register data, >15 % of pop.● 13859 children born 1989-1990, matched with

both parents, yearly follow-up to 2010● Child care types according to paid home care

allowances (government + municipalities)● Excluded children:

● With divorced, separ. or single parents at age 3● With under 1 year-old siblings (as day care could

not be identified for them)

Page 15: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

Child care type identified through home care allowance

Home care allowance was only paid for under 3-year-old children - cannot identify day care for older children

Home care allowance

No Children in public day care

Yes At home (or minority in private day care)

Page 16: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

Around age 1

Around age 2

Around age3

Later or never

0 1 2 3 4 5 6 7

home careday carepre-primarySeries5

age

Page 17: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

Descriptive Statistics: childcare

Page 18: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

Outcomes for analyses

● Continuing from comprehensive school to further secondary education by age 17 (non-drop out)

● General secondary degree at age 20● Entry into higher education at age 20

Page 19: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

Explanatory factors

1. Gender2. + Mother’s education and father’s education

(exogenous controls)3. + Mother’s and father’s unemployment,

household income per consumption unit (partly endogenous controls)

Page 20: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

Results?

Page 21: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

M1a M2a M3a M1b M2b M3b M1c M2c M3c

Age of entry into public day care (ref. Later or never)Around the age of 1 0.01*** 0.01 -0.00 0.08*** 0.03*** -0.01 0.07*** 0.02** 0.01

Around the age of 2 0.03*** 0.02*** 0.01 0.14*** 0.06*** 0.02 0.09*** 0.03*** 0.01Around the age of 3 0.01** 0.01 0.00 0.10*** 0.05*** 0.02* 0.07*** 0.03*** 0.02*

Female (ref. Male) -0.00 -0.00 -0.00 0.16*** 0.16*** 0.16*** 0.10*** 0.10*** 0.10***Mothers education (ref. Less)

Upper secondary education 0.03*** 0.03*** 0.12*** 0.11*** 0.10*** 0.10***Higher education 0.05*** 0.05*** 0.29*** 0.25*** 0.23*** 0.21***

Fathers education (ref. Less)

Upper secondary education 0.02*** 0.02*** 0.06*** 0.06*** 0.04*** 0.04***Higher education 0.03*** 0.03*** 0.27*** 0.22*** 0.18*** 0.15***

Fathers unemployment (ref. Not unemployed) -0.01 -0.04*** -0.05***Mothers unemployment (ref. Not unemployed) -0.01*** -0.05*** -0.03***Houdehold income per consumption unit (ref. Lowest)

Second quantile 0.01 0.01 -0.01

Third quantile 0.02** 0.05*** 0.02Fourth quantile 0.02*** 0.10*** 0.05***

Highest quantile 0.01 0.18*** 0.07***

*** p<0.01, ** p<0.05, * p<0.1

Table 2. Logistic regression models of between the age of entry into the public day care and educational outcomes in the early adulthood (results as average marginal effects (AME); N = 13859)

Dependent variable:

Entry into secondary education at age 17

General secondary degree at age 20

Entry into higher education at age 20

Source: Own calculations based on the data set from Statistics Finland

Page 22: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

Enrollment in secondary education at age 17

M1: Clear selectionM2: Some positive association remainingM3: All associations gone

Page 23: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

General secondary degree at age 20

M1: Strong selectionM2: Clear positive association remainingM3: Small or non. sig. associations

Page 24: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

Entry into higher education at age 20

M1: Clear selectionM2: Some small positive association remainingM3: Small or non. sig. associations

Page 25: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

Heterogeneous Effects?

Page 26: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

No statistically significant interaction with mothers education (on any outcomes)

Page 27: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

Municipality fixed effects

No change Suggests municipality top-up does not change

outocomes – but influences absolute level of home care

Page 28: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

Summary

● Tertiary educated mothers most likely to choose day care, low educated home care

● Models show positive effects for day care even after controlling for parental education, weakest for those entering day care at the age of 1

● Differences by mother’s education small in last models = effects mediated through income and labor market attach. of parents (=overcontrolling)

Page 29: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

Meaning… Home may be sweet for some but on average kids do better if they try the wild side!

Page 31: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland

Extras

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Page 33: Erola, Karhula & Kilpi-Jakonen: Home sweet home? Long-term educational outcomes of childcare arrangements in Finland