The Growing Up In Scotland survey will follow 8,000 children to adolescence, with one cohort starting from birth and another starting at age two to three.
The researchers will revisit the children every year until the age of five.
The children will then be monitored at a series of key transition points, such as when they start primary school.
Findings from the study, which will be carried out by the Scottish Centre for Social Research (SCSR), will be made available to policymakers, academics and early years practitioners.
SCSR co-director Simon Anderson said, 'This is the first study of its kind to be carried out exclusively in Scotland. The survey will collect information on family structure, childcare, child and family health and attitudes towards parenting.
'In the first year we will interview the children's main carers, most likely the mothers. But as the study progresses we hope to introduce the views of grandparents and other carers. Once it becomes practically possible, the survey will interview the children themselves.'
The study has been commissioned and funded by the education department of the Scottish Executive. Fiona McDiarmid, senior research officer for the children and young people's group, said the Executive would provide 1m of funding each year. Funding has so far been secured until 2007.
Ms McDiarmid said, 'There is a great need in the education department for data on the early years. The survey will provide us with the opportunity to assess and evaluate the Executive's early years policies for service provision and parent support networks.'
The first set of data from Growing Up in Scotland will be made publicly available in mid-2006.
