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Estimating Demand for preschools in Russia

Listed author(s):
  • Levin, Mark

    ()

    (Russian Academy of National Economy and Public Administration; National Research University Higher School of Economics)

  • Oshchepkov, Aleksey

    ()

    (National Research University Higher School of Economics)

  • Shilova, Nadezhda

    ()

    (Russian Academy of National Economy and Public Administration; National Research University Higher School of Economics)

In this paper, using RLMS-HSE micro-data of 2000–2015 we analyze demand for preschools in Russia. Measuring demand for preschools, in particular unsatisfied demand is of high importance for public policy, but it is a challenging task due to the traditional identification problem: only a joint outcome of demand and supply is observed but not the demand itself. This problem is particularly severe in the Russian case where supply of slots in preschools is rationed and prices are regulated by state. To overcome this problem we employ an approach first proposed by Poirier (1980) and estimate a joint system of demand and supply equations as a partial observability model. Our results confirm a widespread view about the strong deficit of slots in preschools in Russia. We find that almost 80% all mothers with children of age 0–7 are willing to use preschools, but almost half of them are not able to do that due to the limited supply. At the same time, we show that there is a non-negligible group of households which potentially might use preschools but don’t do that. This indicates that a more effective redistribution of resources within the Russian public preschool system could lead to a higher enrollment. We also find that the amount of unsatisfied demand among non-employed mothers is higher than among the employed ones, which suggests that raising the availability of preschools could stimulate labor force participation of Russian women

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Article provided by Russian Presidential Academy of National Economy and Public Administration in its journal Economic Policy.

Volume (Year): 2 (2017)
Issue (Month): (April)
Pages: 100-131

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Handle: RePEc:rnp:ecopol:ep1715
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  1. Katharina Wrohlich, 2008. "The excess demand for subsidized child care in Germany," Applied Economics, Taylor & Francis Journals, vol. 40(10), pages 1217-1228.
  2. Селиверстова И. В., 2008. "Охват Детей Дошкольным Образованием: Уровень, Межрегиональная Дифференциация И Ее Причины," Вопросы образования // Educational Studies, НИУ ВШЭ, issue 3, pages 199-209.
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  8. Савицкая Е. В., 2004. "Некоторые Итоги Исследования Системы Детского Дошкольного Образования," Вопросы образования // Educational Studies, НИУ ВШЭ, issue 4, pages 261-277.
  9. David M. Blau & Alison P. Hagy, 1998. "The Demand for Quality in Child Care," Journal of Political Economy, University of Chicago Press, vol. 106(1), pages 104-146, February.
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  11. Wilde, Joachim, 2000. "Identification of multiple equation probit models with endogenous dummy regressors," Economics Letters, Elsevier, vol. 69(3), pages 309-312, December.
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  13. Robert Breunig & Andrew Weiss & Chikako Yamauchi & Xiaodong Gong & Joseph Mercante, 2011. "Child Care Availability, Quality and Affordability: Are Local Problems Related to Labour Supply?," The Economic Record, The Economic Society of Australia, vol. 87(276), pages 109-124, March.
  14. Joshua Angrist & Alan Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," Working Papers 834, Princeton University, Department of Economics, Industrial Relations Section..
  15. Greg J. Duncan & Katherine Magnuson, 2013. "Investing in Preschool Programs," Journal of Economic Perspectives, American Economic Association, vol. 27(2), pages 109-132, Spring.
  16. Poirier, Dale J., 1980. "Partial observability in bivariate probit models," Journal of Econometrics, Elsevier, vol. 12(2), pages 209-217, February.
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