TY - RPRT AU - Hojman, Andrés AU - Bóo, Florencia López TI - Cost-Effective Public Daycare in a Low-Income Economy Benefits Children and Mothers PY - 2019/Aug/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 12585 UR - https://www.iza.org/publications/dp12585 AB - This paper evaluates the impacts of a public program that introduced access to part-time childcare centers for children younger than four years of age in poor urban areas in Nicaragua. We explore the effects of this program on several measures of children's and parental outcomes. Our identification strategy exploits the original randomization and the distance to the centers, using Instrumental Variables (IV) and Marginal Treatment Effects (MTE) methods to tackle imperfect compliance with the original treatment assignments. We present a theoretical model to rationalize our IV assumptions. We find a positive impact of 0.35 standard deviations on the personal-social domain of a widely used development test, and an impact of 14 percentage points on mothers' work participation. Our results are robust to different econometric specifications. We also find suggestive evidence that quality greatly matters for the impacts at the child level, but not at the mother level. KW - Latin America KW - daycare KW - early childhood development KW - maternal labor force participation KW - RCT KW - quality ER -