SOEPpapers on Multidisciplinary Panel Data Research at DIW BerlinThis series presents research findings based either directly on data from the German Socio-Economic Panel (SOEP) or using SOEP data as part of an internationally comparable data set (e.g. CNEF, ECHP, LIS, LWS, CHER/PACO). SOEP is a truly multidisciplinary household panel study covering a wide range of social and behavioral sciences:
Early Child Care and Child Outcomes: The Role of Grandparents *In this paper, we focus on the impact of early grandparents' care on child cognitive outcomes, in the short and medium term, using data from the Millennium Cohort Study (UK). Compared with children looked after in a formal care centre, children cared by grandparents (as well as parents) are better in naming objects, but worse in tests concerning basic concepts development, problem-solving, mathematical concepts and constructing ability. In order to assess a causal link between early care and child outcomes, we employ panel methods and instrumental variables techniques that confirm that grandparental care matters more for naming ability while formal care is more important for problem-solving ability and basic concepts development. These results hide strong heterogeneities: on the one hand, the positive association between grandparents' care and child outcomes is stronger for children in more advantaged households; on the other hand, the negative association is significant only for children in more disadvantaged households.
The paper examines the gender wage gap in Italy during the 2008-2012 economic crisis, using cross-sectional EU-SILC data. The gender wage gap increased from 4% in 2008 to 8% in 2012, while for most European countries the gap decreased over the same period. After 2010 the growth of the Italian gender wage gap (and its unexplained component) was particularly high in the upper part of the wage distribution. In 2010-2011 a wage freeze in the public sector was introduced as an austerity measure, and the average public sector premium dropped from 15% to 11%. Using counterfactual analyses, we show that the wage freeze has been one of the major causes of the growth of the gender wage gap, disproportionately affecting women, who are more likely to be employed in the public sector. This 'policy effect' accounts for more than 100% of the increase between 2009 and 2011, while other changes, if anything, would have reduced the gender gap.
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