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Research shows differences in young children’s cognitive and non-cognitive development according to family background hinting to the importance of early intervention. Institutional childcare plays an important role as 33.6 % of children below and 93 % of children above the age of three are in childcare in Germany. This paper focuses on the moderating effect of external childcare on the relation between family background and socioemotional development. Data from the German National Educational Panel Study (NEPS, N =1435) is used to analyze the impact of early institutional childcare on children’s socioemotional skills. Results show small effects of social background but comparatively high effects of the duration of early external childcare which is linked to more prosocial and less problem behavior.