Public and parental investments in children. Evidence from the literature on non-parental child care

This paper summarizes the most recent empirical research on parental and social investments in children, with a focus on policies providing non-parental child care. The empirical findings are conceptualized in a simple theoretical framework showing how parents' decisions and policy intervention interact in contributing to child's development. The results from these studies are presented taking into account the institutional context where the policy has been implemented and the timing of the intervention. The majority of large-scale policies providing non- parental child care have positive eects on children's cognitive outcomes, both in the short and in the medium run. Early childhood policies can have long-lasting effects on adult outcomes, also boosting the development of noncognitive skills, that are used and rewarded in labor market and social life.