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Consequences of mixed provision of child care: An overview on the German market

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  • Muehler, Grit

Abstract

Universal child care that is available, affordable and of good quality is regarded as a key instrument of a country's social and labor market policy. As full public involvement in the provision of child care is costly, licensing non-public providers can enlarges parental choice and relieve public funds. This paper analyzes the consequences of universal, mixed-market provision of child care for availability and quality by directly comparing public providers to various non-public providers such as welfare organizations, churches and commercial providers. Controlling for regional and socio-demographic differences in participation, results show that non-religious and in particular commercial providers serve the under three-year-olds and respond to the demand for full-day care. Furthermore, they employ more personnel with a tertiary education. Hence, commercial providers can - at least when covering rather low market shares - increase parental choice and contribute to the provision of high-quality child care. --

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Bibliographic Info

Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 08-077 [rev.].

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Date of creation: 2010
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Handle: RePEc:zbw:zewdip:08077r

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Keywords: universal child care; mixed industry; public and private sector;

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Cited by:
  1. Jochen Kluve & Marcus Tamm, 2013. "Parental leave regulations, mothers’ labor force attachment and fathers’ childcare involvement: evidence from a natural experiment," Journal of Population Economics, Springer, Springer, vol. 26(3), pages 983-1005, July.

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