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Preferences for Childcare Policies: Theory and Evidence

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  • Rainald Borck
  • Katharina Wrohlich

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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Bibliographic Info

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
Date of revision:
Handle: RePEc:diw:diwwpp:dp827

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

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References

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  1. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP) – Scope, Evolution and Enhancements," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, Duncker & Humblot, Berlin, vol. 127(1), pages 139-169.
  2. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521766555.
  3. Besley, Timothy & Coate, Stephen, 1991. "Public Provision of Private Goods and the Redistribution of Income," American Economic Review, American Economic Association, American Economic Association, vol. 81(4), pages 979-84, September.
  4. Ted Bergstrom & Soren Blomquist, 1994. "Political Economy of Subsidized Day Care," Public Economics, EconWPA 9401001, EconWPA.
  5. Heckman, James J. & Masterov, Dimitriy V., 2007. "The Productivity Argument for Investing in Young Children," IZA Discussion Papers 2725, Institute for the Study of Labor (IZA).
  6. Corneo, Giacomo & Gruner, Hans Peter, 2002. "Individual preferences for political redistribution," Journal of Public Economics, Elsevier, Elsevier, vol. 83(1), pages 83-107, January.
  7. Patricia Apps & Ray Rees, 2004. "Fertility, Taxation and Family Policy," Scandinavian Journal of Economics, Wiley Blackwell, Wiley Blackwell, vol. 106(4), pages 745-763, December.
  8. Epple, Dennis & Romano, Richard E., 1996. "Ends against the middle: Determining public service provision when there are private alternatives," Journal of Public Economics, Elsevier, Elsevier, vol. 62(3), pages 297-325, November.
  9. Booth, Alison L & Sepulveda, Facundo, 2004. "Endogenous Fertility Policy," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4575, C.E.P.R. Discussion Papers.
  10. Wolfram Merzyn & Heinrich Ursprung, 2003. "Voter support for privatizing education : evidence on self-interest and ideology," Working Papers of the Research Group Heterogenous Labor, Research Group Heterogeneous Labor, University of Konstanz/ZEW Mannheim 03-05, Research Group Heterogeneous Labor, University of Konstanz/ZEW Mannheim.
  11. Alberto Alesina & Eliana La Ferrara, 2001. "Preferences for Redistribution in the Land of Opportunities," NBER Working Papers 8267, National Bureau of Economic Research, Inc.
  12. 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, Elsevier.
  13. Raquel Fernandez & Richard Rogerson, 2003. "Equity and Resources: An Analysis of Education Finance Systems," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 111(4), pages 858-897, August.
  14. Fuchs-Schundeln, Nicola & Alesina, Alberto, 2007. "Good-Bye Lenin (Or Not?): The Effect of Communism on People's Preferences," Scholarly Articles 4553032, Harvard University Department of Economics.
  15. La Ferrara, Eliana & Alesina, Alberto, 2005. "Preferences for Redistribution in the Land of Opportunities," Scholarly Articles 4552533, Harvard University Department of Economics.
  16. Epple, Dennis & Romano, Richard E, 1996. "Public Provision of Private Goods," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 104(1), pages 57-84, February.
  17. 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.
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Citations

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Cited by:
  1. Elinder, Mikael & Jordahl, Henrik, 2012. "Political Preferences and Public Sector Outsourcing," IZA Discussion Papers 6632, Institute for the Study of Labor (IZA).
  2. Peter Bearse & Buly A. Cardak & Gerhard Glomm & B. Ravikumar, 2011. "Why do education vouchers fail at the ballot box?," Working Papers, Federal Reserve Bank of St. Louis 2011-032, Federal Reserve Bank of St. Louis.
  3. Bruno Arpino & Chiara D. Pronzato & Lara P. Tavares, 2012. "Mothers’ labour market participation: Do grandparents make it easier?," Carlo Alberto Notebooks, Collegio Carlo Alberto 277, Collegio Carlo Alberto.
  4. Hanming Fang & Peter Norman, 2014. "Toward an efficiency rationale for the public provision of private goods," Economic Theory, Springer, Springer, vol. 56(2), pages 375-408, June.
  5. Rainald Borck, 2014. "Adieu Rabenmutter—culture, fertility, female labour supply, the gender wage gap and childcare," Journal of Population Economics, Springer, Springer, vol. 27(3), pages 739-765, July.
  6. Rainald Borck, 2011. "Adieu Rabenmutter - The Effect of Culture on Fertility, Female Labour Supply, the Gender Wage Gap and Childcare," CESifo Working Paper Series 3337, CESifo Group Munich.
  7. Egger, Peter H. & Radulescu, Doina M., 2012. "Family policy and the number of children: Evidence from a natural experiment," European Journal of Political Economy, Elsevier, vol. 28(4), pages 524-539.

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