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Cost Functions, Efficiency, and Quality in Day Care Centers

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  • H. Naci Mocan

Abstract

Using a new data set, this paper finds that there is no quality difference between nonprofit and for-profit day care centers, and with the exception of one segment of the nonprofit sector, there is no efficiency difference. The cost of increasing the quality from mediocre to good is between 12 and 16 cents per child-hour. Centers have inelastic demand for workers. Child care workers with 13 to 15 years of education and workers with more than 16 years of education are substitutes; workers with more than 16 years of education are complements to workers with 12 or fewer years of education. There are economies of scale and scope in production.

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Bibliographic Info

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

Volume (Year): 32 (1997)
Issue (Month): 4 ()
Pages: 861-891

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Handle: RePEc:uwp:jhriss:v:32:y:1997:i:4:p:861-891

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

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Cited by:
  1. Chris M. Herbst & Erdal Tekin, 2008. "Child Care Subsidies and Child Development," NBER Working Papers 14474, National Bureau of Economic Research, Inc.
  2. Boyce, John R. & Hollis, Aidan, 2005. "Governance of electricity transmission systems," Energy Economics, Elsevier, vol. 27(2), pages 237-255, March.
  3. Henrik Egbert & Andreas Hildenbrand, 2012. "Der Coupon-Handelsansatz als Modell fuer eine subjektbezogene Finanzierung der Kinderbetreuung," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 232(2), pages 116-128, March.

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