Parents should be allowed to take 12 months off work with pay following the birth of a child, according to a report from the Organisation for Economic Co-operation and Development.
The report found that spending on each pre-school and primary school student in Ireland relative to GDP was well below that of most other OECD countries.
According to the OECD report early childhood is the "foundation stage of well-being, socialisation and life-long learning.
But it expressed concern at the serious shortage of quality services for children under 4 years-of-age and noted that "significant energies and funding will need to be invested in [childcare and education] to create a system in tune with the needs of a full employment economy and with a new understanding of how children work and learn".
Since few countries can afford the high cost of providing quality crèche services with adequate staff-child ratios and with the demand regulated childcare places on the increase, the report suggests that a Government measure like this "would almost certainly be more attractive to Irish parents than large-scale investment in collective infant care or than the present reliance on informal care during the critical first year of the child's life."
This shortage of childcare facilities in the State contributes to the fact that employment among single mothers in Ireland is lower than in other OECD countries. Only 45 per cent of single mothers are working in Ireland, compared with 81 per cent in Austria, 76 per cent in France and 84 per cent in Japan.
The OECD's 'Thematic Review of Early Childhood Education and Care Policy in Ireland' also recommends significantly increasing funding for all early childhood services to bring the State into line with average OECD spend in this area.
It also advises that control of pre-school education, funding and policy under just one Department, even though funding for the sector could be drawn from a number of Departments because the benefits of improved pre-school and primary education will result in social inclusion and labour market expansion - to the benefit of all.
A national plan for early childhood services, rolled out over a three-year basis with clearly spelt-out targets and time lines coupled with accountability from the participating departments is urgently required, according to the OECD team.
Another policy that OECD is keen to see implemented is the concentration of childcare and primary school services at one site, to reduce costs and assist working parents.
The OECD is also "deeply concerned" about the educational difficulties faced by Traveller children. It said because of poor enrolment rates of Traveller children in pre-schools they were entering primary school at "a great disadvantage" and noted a "massive drop out of Traveller children before secondary school.
It says the The Department of Education should immediately implement the recommendations report, 'Pre-School for Travellers', taking into account the responses of Traveller families to the report.