Understanding the mechanisms and outcomes of skill formation: the effects of preschool on the quality of early careers in Peru

Journal article

Preschool education represents a critical investment in skill development, contributing to long-term quality of life and human development outcomes, including labor market results. Most of the existing evidence has primarily focused on assessing the effects of preschool on labor outcomes, particularly income levels, but much less is known about whether it exerts similar effects on non-monetary aspects of job quality. We thus study the impact of preschool attendance in Peru on early-career quality of employment, proxied by access to job benefits aligned with ILO’s notion of Decent Work. We build on a suitable theoretical framework linking preschool and other educational investments with job quality outcomes in early career stages, positing the dynamic development of multifaceted skill stocks as the key mediating factor in this connection. This framework is estimated using a Structural Equation Model (SEM) with longitudinal data from the Young Lives study in Peru spanning 2002–2016. Our results show that preschool significantly increases the likelihood of obtaining jobs with health insurance, pension contributions, and paid sick leave. These effects are primarily transmitted through the development of cognitive skills in early childhood, which are indeed key determinants in the formation of both cognitive and non-cognitive skills later in life.

Authors: Mansilla, S; Nogales, R

• Publication status: Published
• Peer review status: Peer reviewed
• Publisher: Elsevier
• Journal: International Journal of Educational Development
• Volume: 120
• Article number: 103468
• Publication date: 2025-12-13
• Acceptance date: 2025-12-03
• DOI: 10.1016/j.ijedudev.2025.103468
• EISSN: 1873-4871
• ISSN: 0738-0593
• Language: English
• Keywords: preschool education; job quality; skills formation; Peru; structural equation modelling