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Preferences for Childcare Policies: Theory and Evidence

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Author Info
Rainald Borck
Katharina Wrohlich

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Abstract

We analyse preferences for public, private or mixed provision of childcare theoretically and empirically. We model childcare as a publicly provided private good. Richer households should prefer private provision to either pure public or mixed provision. If public provision redistributes from rich to poor, they should favour mixed over pure public provision, but if public provision redistributes from poor to rich, the rich and poor might favour mixed provision while the middle class favour public provision ('ends against the middle'). Using estimates for household preferences from survey data, we find no support for the ends-against-the-middle result.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.89525.de/dp827.pdf
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Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 827.

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Length: 39 p.
Date of creation: 2008
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Handle: RePEc:diw:diwwpp:dp827

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Related research
Keywords: childcare; redistribution; political preferences; public provision of private goods;

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Find related papers by JEL classification:
J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior
H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
D19 - Microeconomics - - Household Behavior - - - Other

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  1. Epple, Dennis & Romano, Richard E, 1996. "Public Provision of Private Goods," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 57-84, February. [Downloadable!] (restricted)
  2. Merzyn, Wolfram & Ursprung, Heinrich W., 2005. "Voter support for privatizing education: evidence on self-interest and ideology," European Journal of Political Economy, Elsevier, vol. 21(1), pages 33-58, March. [Downloadable!] (restricted)
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  3. Raquel Fernandez & Richard Rogerson, 2003. "Equity and Resources: An Analysis of Education Finance Systems," Journal of Political Economy, University of Chicago Press, vol. 111(4), pages 858-897, August. [Downloadable!] (restricted)
    Other versions:
  4. James J. Heckman & Dimitriy V. Masterov, 2007. "The Productivity Argument for Investing in Young Children," Review of Agricultural Economics, American Agricultural Economics Association, vol. 29(3), pages 446-493, 09. [Downloadable!] (restricted)
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  5. Patricia Apps & Ray Rees, 2004. "Fertility, Taxation and Family Policy," Scandinavian Journal of Economics, Blackwell Publishing, vol. 106(4), pages 745-763, December. [Downloadable!] (restricted)
  6. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP): Scope, Evolution and Enhancements," SOEPpapers 1, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
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  7. Besley, Timothy & Coate, Stephen, 1991. "Public Provision of Private Goods and the Redistribution of Income," American Economic Review, American Economic Association, vol. 81(4), pages 979-84, September. [Downloadable!] (restricted)
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  8. Corneo, Giacomo & Gruner, Hans Peter, 2002. "Individual preferences for political redistribution," Journal of Public Economics, Elsevier, vol. 83(1), pages 83-107, January. [Downloadable!] (restricted)
  9. Kenneth Train, 2003. "Discrete Choice Methods with Simulation," Online economics textbooks, SUNY-Oswego, Department of Economics, number emetr2, March. [Downloadable!]
  10. 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. [Downloadable!] (restricted)
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  11. Epple, Dennis & Romano, Richard E., 1996. "Ends against the middle: Determining public service provision when there are private alternatives," Journal of Public Economics, Elsevier, vol. 62(3), pages 297-325, November. [Downloadable!] (restricted)
  12. Ted Bergstrom & Soren Blomquist, 1995. "The Political Economy of Subsidized Day Care," University of California at Santa Barbara, Economics Working Paper Series 1995B, Department of Economics, UC Santa Barbara. [Downloadable!]
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  13. Alesina, Alberto & La Ferrara, Eliana, 2005. "Preferences for redistribution in the land of opportunities," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 897-931, June. [Downloadable!] (restricted)
    Other versions:
  14. Cohen-Zada, Danny & Justman, Moshe, 2003. "The political economy of school choice: linking theory and evidence," Journal of Urban Economics, Elsevier, vol. 54(2), pages 277-308, September. [Downloadable!] (restricted)
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