Do municipal investments in preschool education affect student achievement?

Carmela Ciccarelli (Università della Calabria)

Abstract

The importance of public spending on preschool education and interventions for early childhood, such as kindergartens and other dedicated programs, is crucial for the cognitive and social development of children in the early stages of life. These investments are also key to long-term academic outcomes. In this regard, the present study aims to analyze the effect of public spending on preschool education and early childhood services, kindergartens, and minors in Italian municipalities on the INVALSI test results for second-grade students in Italian and Mathematics for the period 2013-2018. Endogeneity issues have been minimized using the instrumental variables method, leveraging the exogenous variation introduced by law no. 215/2012. Increased female representation in municipal councils significantly impacts the overall volume of local public expenditure and its distribution. Overall, the results of our analysis show that an increase in public spending on preschool education and childcare improves INVALSI scores in Mathematics.

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