Who's taking care of preschoolers? An analysis of childcare choice in England
AbstractThis paper predicts the effect of childcare prices and quality on choice of childcare and work status in England using the Millenium Cohort Study survey. There are five different types of childcare: maternal care, paternal care, relative/friend care, childminder or daycare. There are three types of work status: full-time, part-time, stay-at-home. Prices of maternal and paternal care are taken as the foregone wage. Furthermore, prices of relative, childminder and daycare are estimated with the assumption that the observed childcare choice selection are a result of a self- selection process. Prices are therefore estimated based on Lee's (1983) method for a multinomial response model with self-selection. Quality of formal care is proxied for using education by type of care and the score received from a childcare quality survey which was conducted nationally. Price results - for the most part - suggest that as prices for a given type of care rises, demand for other types of care increases (relative to its own price). Results are also positive for daycare and childminder quality: as quality increases, own-price elasticity results are positive and elastic. The exception is part-time daycares, where as quality rises, demand for all forms of part-time care decrease (even after controlling for price and quality interactions). Nevertheless, the relative decrease in part-time daycare demand is much smaller than for other forms of part-time care.
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Bibliographic InfoPaper provided by University College London in its series Open Access publications from University College London with number http://discovery.ucl.ac.uk/17572/.
Date of creation: Aug 2009
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Publication status: Published
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Web page: http://www.ucl.ac.uk
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