Childcare Choice and Long-Run Human Capital Outcomes in China

This paper estimates the long-run effects of informal childcare, provided by grandparents, and formal childcare, provided by kindergarten, on human capital outcomes in China. Using data on childcare choice in early childhood, I find that both types of childcare lead to higher educational attainment and better job outcomes. Moreover, the effect of grandparental childcare is stronger for girls, consistent with the son preference. I also find evidence that the kindergarten effect on human capital accumulation is caused by increased maternal labor income and decreased family size. My findings highlight the important role of grandparents and public childcare for children in under-developed areas