This study was prepared by Nadine Fabritz while she was working at the Ifo Institute for Economic Research in the Department for Human Capital and Innovation. It was completed in June 2014 and accepted as a doctoral thesis by the Department of Economics at the University of Munich in October...

Child care and education are important inputs in the human capital production function. The research of Nobel prize winner James Heckman shows that skills are built from the early childhood on and increase the returns of later educational inputs, in short: skill begets skill. Therefore, it is...