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Quality and Cost in Early Childhood Education

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  • Irene Powell
  • James Cosgrove
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    Abstract

    This paper uses a unique survey of 205 child care centers conducted by the U.S. General Accounting Office to estimate flexible-form cost functions for child care. Our model allows us to estimate the tradeoff between cost and such quality factors as the child/staff ratio, child group size, and staff characteristics. The coefficient on the child/staff ratio indicates that decreasing the average child/staff ratio from, for instance, an 11 to 1 ratio to a 10 to 1 ratio, would lead to an increase in costs of roughly 3.4 percent. Staff turnover, education, and experience also had statistically significant effects on cost.

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    Bibliographic Info

    Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

    Volume (Year): 27 (1992)
    Issue (Month): 3 ()
    Pages: 472-484

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    Handle: RePEc:uwp:jhriss:v:27:y:1992:i:3:p:472-484

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    Web page: http://jhr.uwpress.org/

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    Cited by:
    1. Cho, Yoonyoung, 2008. "An Evaluation of A Pronatal Subsidy Program in Korea: A Quasi-Experimental Approach," MPRA Paper 25958, University Library of Munich, Germany.
    2. Mocan, H Naci, 1995. "Quality-Adjusted Cost Functions for Child-Care Centers," American Economic Review, American Economic Association, vol. 85(2), pages 409-13, May.
    3. Blau, David & Currie, Janet, 2006. "Pre-School, Day Care, and After-School Care: Who's Minding the Kids?," Handbook of the Economics of Education, Elsevier.
    4. David M. Blau & H. Naci Mocan, 2002. "The Supply Of Quality In Child Care Centers," The Review of Economics and Statistics, MIT Press, vol. 84(3), pages 483-496, August.
    5. Peter Boenisch & Sven Tagge, 2012. "The Optimal Size of German Child Care Centers and the Impact of Regulation: Estimating the Cost Function of a Regulated Mulzi-Product Firm," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 232(5), pages 545-566, September.
    6. Robert Fenge & Wolfgang Ochel, 2001. "Die Vereinbarkeit von Familie und Beruf: der Schlüssel für eine kinderreiche Gesellschaft," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 54(12), pages 17-29, November.

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