Demand for care for children under the age of three (ECC) has been rising for years. At the same time, schools face a growing number of students with special educational needs and language deficits. How ECC affects these developmental challenges and long-term educational success is still unclear.

This study examines whether ECC reduces the need for language support and special educational support in school by mitigating early learning and developmental deficits. In addition, we analyze the long-term effects of ECC on students' performance in standardized tests in grades 3 and 8.

The supply of childcare places for children under three was expanded across Germany between 2005 and 2013, with regional differences in ECC coverage and in fees across municipalities. Using data from school entry examinations, official school statistics, and standardized test results, we track the cognitive and non-cognitive development trajectories of students with different access to care for children under three. Using a staggered difference-in-differences design, we estimate the preventive effect of early childhood education on formal special educational needs and on school performance up to age 15. This study thus shows whether ECC can improve educational outcomes in the long term and reduce the number of students who need additional support because of special educational needs and language deficits.