Education and labour market effects of kindergarten expansion in Portugal

Abstract

This paper is the first thorough analysis of the impact of the massive expansion of kindergarten provision that occurred between 1985 and 2009 in Portugal. Using two large scale administrative datasets, weconstructameasureofpotentialkindergartenexposureatmunicipallevelandestimateitsimpactoneducationandthelabourmarket. Wefindthattheexpansioninkindergartensupplyledtoanincreaseineducationalattainmentrangingbetween0.1p.pand3.6p.pinnationalstandardisedexams in Portuguese and Mathematics at different moments of the students’ academic life, while the impacts on wages are modest and less significant.