This article describes a conceptual and empirical approach for estimating a human capital production function of child development that incorporates mother- or child-fixed effects. The use of mother- or child-fixed effects is common in this applied economics literature, but its application is often inconsistent with human capital theory. We…

Abundant evidence has shown that quality early childhood programs generate enormous long-term benefits for young people as they grow to become productive adults, for our economy, and for society. But we don't have to wait 10 or 20 years to see strong returns on our investments in young children. Some programs create real savings in a year or less.…

Despite significant increases in spending on child care and education during the last decade, PISA scores suggest that educational performance remains static, uneven and strongly related to parents' income and background. Better educational performance could improve labour market outcomes, raise growth, lower the consequences of a disadvantaged…