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Social investments are important for a child’s development and future success. Parental leaves and Early Childhood Education and Care services (ECEC) are among main forms of social investment, contributing to child poverty reduction and increasing equality, as well as underpinning the potential for skilled workers in the future. The aim of the paper is to analyse availability of the main forms of social investment in preschool age children - early childhood education services and parental leaves, in Vidzeme region (Latvia) for a case study. An analysis of policy documents, parents’ surveys at pre-school institutions, interviews with education institution representatives and local authorities regarding education and social matters were conducted in the research. The support system for parents is still dominated by the “passive” form of support system. However, social investment policies are becoming increasingly more important. This is achieved by supporting parents' access to social investment services and by increasing the amount of parental leave benefits. In 2013-2015 funding for child-care and family policy has increased. Expenditure growth was mostly affected by an increase in the allowance for childcare and the minimum parental allowance. The availability of ECEC is moderate, but since 2009 private institutions and since 2013 babysitting services have been co-funded at the national level till May 31, 2016 to improve it. Since September 2015 a 3-year innovative project “Vouchers for the provision of child minder services to workers with nonstandard work schedules” has been introduced too, to promote parental employment and work and family balance. In Vidzeme region, for example, service availability is additionally stimulated by free transport services, ECEC fee discounts for poor, low-income and large families, etc. Results show that the availability of ECEC has been improved and there has been signs of positive changes in children’s development. Nevertheless, the availability of ECEC is moderate, and in some poorer municipalities in Latvia Matthew effects can be spotted – the middle and highest strata of society use services to a higher extend then the low-income society.

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Previous researches show, that social investments in early childhood (until age of 6) are very important, and one of the main types of social investment in this period of time is quality early childhood education and care services (henceforth – ECEC services). Social investments in early childhood have the highest return in human capital, especially for disadvantaged groups of the society. Literature suggests that positive effect of available and qualitative ECEC services can be observed in many areas of life, for example, through improved education indicators, increased participation of the women in the labour market, increased work productivity, higher birth rates, etc. However, the attendance of ECEC services varies considerably between different European Union (henceforth – EU) countries. The aim of this paper is to analyze social investment effect in early childhood in EU countries with high (Denmark), medium (Latvia) and low (Croatia) ECEC service attendance rates, so to find out if and how ECEC service attendance rate in these countries influences such indicators as rate of early leavers from education and training, school graduation rates and female employment rate. To see how situation may change due to the ECEC attendance rate changes in each country analyses was be carried out with imitation model options. This article describes the imitation model, which provides an opportunity to analyze the current situation and compare social investments between different EU countries. The model is designed using ISEE system STELLA MODELING and Imitation Software environment, and it is governed by the criteria that are based on literature studies, as well as analyses of statistic data. An additional benefit is that this model can be adjusted and used to evaluate other countries social investment tendencies as well. Research results show, that not all indicators that have been positively connected with ECEC attendance rate in previous studies have been positively influenced by ECEC attendance rate in chosen case study countries. Analyses showed that only in Croatia positive connections can be observed when it comes to all three indicators. Further studies should be carried out on this topic to get a deeper understanding on ECEC attendance rate effect on these and other indicators, that in the previous studies have been positively linked with ECEC attendance rate.