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The kindergarten attendance allowance in Hungary

Author

Listed:
  • Gábor Kertesi

    (Hungarian Academy of Sciences Institute of Economics, CERS (MTA KRTK KTI), Budapest, Hungary)

  • Gábor Kézdi

    (Central European University (CEU), Budapest, Hungary
    MTA KRTK KTI, Budapest, Hungary)

Abstract

This paper evaluates the kindergarten attendance allowance program in Hungary, a conditional cash transfer (CCT) program introduced in 2009 that aimed to increase kindergarten enrolment of disadvantaged children aged 3 and 4. The administration of the program was decentralised, and we make use of the substantial regional variation in program take-up across municipalities to estimate the program’s effect on enrolment rates. We show modest, but non-negligible effects, despite problems related to the manner of the program’s implementation. We also show that the effects were significantly stronger in areas characterised by an excess supply of kindergarten slots. The results testify to the potential of CCT programs to create demand for child-care services among disadvantaged families; however, the results also highlight the importance of creating an adequate supply of kindergarten facilities where needed.

Suggested Citation

  • Gábor Kertesi & Gábor Kézdi, 2014. "The kindergarten attendance allowance in Hungary," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 64(1), pages 27-49, March.
    • Handle: RePEc:aka:aoecon:v:64:y:2014:i:1:p:27-49
    Note: Support from the OTKA Grant 101409-K is gratefully acknowledged. The translation was sponsored by the Roma Education Fund. An earlier version of this paper was a background study for a policy paper on poverty in Hungary by Tárki and the Budapest Institute. We thank Péter Dívós, Tímea Laura Molnár and Melinda Tir for their help with data management and the analysis, Ágnes Bezeczky for her help with the translation, and Klára Csányi, Ildikó Kovátsné Puskás, Tibor Könyvesi, Éva Surányi and Judit Várhidiné Kelemen for their help with data and information collection. For a Hungarian language version of this paper, see Kertesi – Kézdi (2012).
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    More about this item

    Keywords

    kindergarten allowance; disadvantaged children; Hungary;
    All these keywords.

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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