Most OECD countries spend substantially more on maternity leave schemes than on early childcare. However, given high tax burdens and rapidly aging populations, female labor force participation is critically needed. Moreover, it is important to know whether the main beneficiaries, the children...

Our study explores the impact of selection criteria on the costs and benefits of early childcare for mothers’ employment, child development, and municipalities’ revenues by exploiting the selection criteria of different Italian municipalities in assigning childcare slots. In Italy, only...