Competition for a better future? Effects of competition on child care quality
AbstractLittle is known about how competition affects child care centers' quality. This paper examines the impact of competition on the quality of Dutch child care centers. The results show that high density of child care centers in an area improves scores in quality assessment measures. The positive relationship persists when either the density of primary schools or births in the area are used to instrument the density of child care centers. The effects of competition are exclusive to child care centers that operate in a private market. Despite concerns about the parents' ability to distinguish between low and high quality child care, market competition in the Dutch child care sector appears to improve quality.
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Bibliographic InfoPaper provided by Utrecht School of Economics in its series Working Papers with number 13-14.
Length: 26 pages
Date of creation: Nov 2013
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Find related papers by JEL classification:
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
- H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
- L19 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Other
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