Early education and childcare can have a critical impact both on helping children to develop and in supporting parents (especially mothers) to work. But childcare can also have a significant impact on the disposable income - and, hence, living standards - of families with very young children....

This paper addresses the intergeneration transmission of education and investigates the extent to which early school leaving (at age 16) may be due to variations in permanent income, parental education levels, and shocks to income at this age. Least squares estimation reveals conventional...