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The Demand for Child Care Quality: An Hedonic Price Theory Approach

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  • Alison P. Hagy

Abstract

I use an hedonic price theory approach to estimate the demand for child care quality. Two complementary surveys, the National Child Care Survey, 1990 (NCCS) and the Profile of Child Care Settings Study (PCS), allow me to derive an implicit price for staff-to-child ratio. I use this price as an explanatory variable in a demand equation for this quality attribute. Direct purchase-of-service contracts or voucher programs, by subsidizing only those providers that satisfy state regulatory requirements, effectively lower the implicit price of regulated attributes, such as staff-to-child ratio. Results of this study suggest that such tied subsidies have almost no influence on the demand for child care quality.

Suggested Citation

  • Alison P. Hagy, 1998. "The Demand for Child Care Quality: An Hedonic Price Theory Approach," Journal of Human Resources, University of Wisconsin Press, vol. 33(3), pages 683-710.
  • Handle: RePEc:uwp:jhriss:v:33:y:1998:i:3:p:683-710
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    Cited by:

    1. Herbst, Chris M. & Tekin, Erdal, 2010. "Child care subsidies and child development," Economics of Education Review, Elsevier, vol. 29(4), pages 618-638, August.
    2. Michaela Kreyenfeld & Gert Wagner, 2000. "Die Zusammenarbeit von Staat und Markt in der Sozialpolitik: das Beispiel Betreuungsgutscheine und Qualitätsregulierung für die institutionelle Kinderbetreuung," Discussion Papers of DIW Berlin 199, DIW Berlin, German Institute for Economic Research.
    3. Rachel Gordon & P. Chase-Lansdale, 2001. "Availability of child care in the United States: A description and analysis of data sources," Demography, Springer;Population Association of America (PAA), vol. 38(2), pages 299-316, May.
    4. Henrik Andersson, 2008. "Willingness to Pay for Car Safety: Evidence from Sweden," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 41(4), pages 579-594, December.
    5. Blau, David & Currie, Janet, 2006. "Pre-School, Day Care, and After-School Care: Who's Minding the Kids?," Handbook of the Economics of Education, Elsevier.
    6. Maria-Isabel Farfan-Portet & Vincent Lorant & Francesca Petrella, 2011. "Access to Childcare Services: The Role of Demand and Supply-Side Policies," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 30(2), pages 165-183, April.
    7. David Blau, 2003. "Child Care Subsidy Programs," NBER Chapters,in: Means-Tested Transfer Programs in the United States, pages 443-516 National Bureau of Economic Research, Inc.
    8. 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.
    9. Xiaodong Gong & Robert Breunig, 2010. "Child care availability, quality and affordability: are local problems related to maternal labour supply ?," Treasury Working Papers 2010-02, The Treasury, Australian Government, revised Apr 2010.
    10. Anne-Marie Daune-Richard & Sophie Odena & Francesca Petrella, 2007. "Entreprises et modes d'accueil de la petite enfance : innovation et diversification," Post-Print halshs-00458566, HAL.
    11. Rebecca Brown & Tue Gørgens, 2009. "Corporate governance and financial performance in an Australian context," Treasury Working Papers 2009-02, The Treasury, Australian Government, revised Mar 2009.
    12. SHIMIZUTANI Satoshi & NOGUCHI Haruko, 2003. "Quality of Child Care in Japan: Evidence from Micro-level Data (in Japanese)," ESRI Discussion paper series 054, Economic and Social Research Institute (ESRI).
    13. Guyonne Kalb, 2009. "Children, Labour Supply and Child Care: Challenges for Empirical Analysis," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 42(3), pages 276-299.
    14. Jason F. Shogren, 2001. "Children And The Environment: Valuing Indirect Effects On A Child'S Life Chances," Contemporary Economic Policy, Western Economic Association International, vol. 19(4), pages 382-396, October.

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