Preschool education in Brazil:Does public supply crowd out private enrollment?
AbstractWe examine if an expansion in the supply of public preschool crowds-out private enrollment using rich data for municipalities in Brazil from 2000-2006, where federal transfers to local governments change discontinuously with given population thresholds. Results from a regression-discontinuity design reveal that larger federal transfers lead to a significant expansion of local public preschool services, but show no effects on the quantity or quality of private provision. These findings are consistent with a theory in which households differ in willingness-to-pay for preschool services, and private suppliers optimally adjust prices in response to an expansion of lower-quality, free-of-charge public supply.
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Bibliographic InfoPaper provided by NIPE - Universidade do Minho in its series NIPE Working Papers with number 16/2013.
Date of creation: 2013
Date of revision:
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Other versions of this item:
- Paulo Bastos & Odd Rune Straume, 2013. "Preschool Education in Brazil: Does Public Supply Crowd Out Private Enrollment?," Research Department Publications IDB-WP-463, Inter-American Development Bank, Research Department.
- Paulo Bastos & Odd Rune Straume, 2013. "Preschool Education in Brazil: Does Public Supply Crowd Out Private Enrollment?," IDB Publications 83739, Inter-American Development Bank.
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
- L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-10-05 (All new papers)
- NEP-EDU-2013-10-05 (Education)
- NEP-LAM-2013-10-05 (Central & South America)
- NEP-PBE-2013-10-05 (Public Economics)
- NEP-URE-2013-10-05 (Urban & Real Estate Economics)
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