Efficiency, quality, and social externalities in the provision of day care: Comparisons of nonprofit and for-profit firms
AbstractEfficiency comparisons of nonprofit and for-profit day care centers reveal that, in 1977, production functions of nonprofit and for-profit day care centers were similar. Cost levels were also similar for centers providing identical services. However, on average, nonprofit centers offered costlier services than for-profit centers. In the segment of the industry not subject to federal regulations, nonprofit centers offered services with higher social externalities than for-profit centers. In the federally regulated segment, nonprofit centers offered higher quality services than for-profit centers. Therefore the important difference in economic outcome of nonprofit and for-profit day care centers involved product selection rather than efficiency levels. Copyright Kluwer Academic Publishers 1993
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Bibliographic InfoArticle provided by Springer in its journal Journal of Productivity Analysis.
Volume (Year): 4 (1993)
Issue (Month): 1 (June)
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Web page: http://www.springerlink.com/link.asp?id=100296
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"The Supply of Quality in Child Care Centers,"
NBER Working Papers
7225, National Bureau of Economic Research, Inc.
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