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The impact of market forces on the provision of childcare: Insights from the 2005 Childcare Act in the Netherlands

Author Info

Listed author(s):
  • Joëlle Noailly

    ()

  • Sabine Visser

    ()

  • Paul Grout

    ()

Abstract

In January 2005, the Dutch government introduced the Childcare Act which replaced the former financing system which had elements of both supply- and demand-financing with a fully demand-financing system. Whereas previously public funds partly flowed to suppliers in the form of subsidies granted by local municipalities, they now flow exclusively to parents who are free to choose their childcare provider. This reform was intended to stimulate market forces in the market for childcare. This paper examines the impact of the introduction of market forces on the provision of childcare in the Netherlands.

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Paper provided by CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Memorandum with number 176.

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Date of creation: Mar 2007
Handle: RePEc:cpb:memodm:176
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Keywords:

Find related papers by JEL classification:

  • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
  • L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise
  • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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  1. David M. Blau & H. Naci Mocan, 2002. "The Supply Of Quality In Child Care Centers," The Review of Economics and Statistics, MIT Press, vol. 84(3), pages 483-496, August.
  2. Edward L. Glaeser, 2002. "The Governance of Not-For-Profit Firms," NBER Working Papers 8921, National Bureau of Economic Research, Inc.
  3. H. Naci Mocan, 1995. "The Child Care Industry: Cost Functions, Efficiency, and Quality," NBER Working Papers 5293, National Bureau of Economic Research, Inc.
  4. Henry Hansmann & Daniel Kessler & Mark McClellan, 2002. "Ownership Form and Trapped Capital in the Hospital Industry," NBER Working Papers 8989, National Bureau of Economic Research, Inc.
  5. Sujoy Chakravarty & Martin Gaynor & Steven Klepper & William B. Vogt, 2006. "Does the profit motive make Jack nimble? Ownership form and the evolution of the US hospital industry," Health Economics, John Wiley & Sons, Ltd., vol. 15(4), pages 345-361.
  6. H. Naci Mocan, 2001. "Can Consumers Detect Lemons? Information Asymmetry in the Market for Child Care," NBER Working Papers 8291, National Bureau of Economic Research, Inc.
  7. H. Naci Mocan & Erdal Tekin, 2003. "Nonprofit Sector and Part-Time Work: An Analysis of Employer-Employee Matched Data on Child Care Workers," The Review of Economics and Statistics, MIT Press, vol. 85(1), pages 38-50, February.
  8. Pierre Koning & Joëlle Noailly & Sabine Visser, 2007. "Do non-profits make a difference? Evaluating non-profit vis-à -vis for-profit organisations in social services," CPB Document 142, CPB Netherlands Bureau for Economic Policy Analysis.
  9. Paul A. Grout & Michelle J. Yong, 2003. "The Role of Donated Labour and Not for Profit at the Public/Private Interface," The Centre for Market and Public Organisation 03/074, Department of Economics, University of Bristol, UK.
  10. Swati Mukerjee & Ann Dryden Witte & Sheila Hollowell, 1990. "Provision of Child Care: Cost Functions for Profit-Making and Not-for-Profit Day Care Centers," NBER Working Papers 3345, National Bureau of Economic Research, Inc.
  11. Preston, Anne E, 1988. "The Effects of Property Rights on Labor Costs of Nonprofit Firms: An Application to the Day Care Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 36(3), pages 337-350, March.
  12. Irene Powell & James Cosgrove, 1992. "Quality and Cost in Early Childhood Education," Journal of Human Resources, University of Wisconsin Press, vol. 27(3), pages 472-484.
  13. Jean Marie Abraham & Martin Gaynor & William B Vogt, 2003. "Entry and Competition in Local Hospital Markets," The Centre for Market and Public Organisation 03/088, Department of Economics, University of Bristol, UK.
  14. Lakdawalla, Darius & Philipson, Tomas, 2006. "The nonprofit sector and industry performance," Journal of Public Economics, Elsevier, vol. 90(8-9), pages 1681-1698, September.
  15. Eric Maskin & Jean Tirole, 2004. "The Politician and the Judge: Accountability in Government," American Economic Review, American Economic Association, vol. 94(4), pages 1034-1054, September.
  16. Siv Gustafsson & Frank Stafford, 1992. "Child Care Subsidies and Labor Supply in Sweden," Journal of Human Resources, University of Wisconsin Press, vol. 27(1), pages 204-230.
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Cited by:

  1. Muehler, Grit, 2008. "Institutional Childcare: An Overview on the German Market," ZEW Discussion Papers 08-077, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. Gautier, Pieter A. & van der Klaauw, Bas, 2009. "Institutions and labor market outcomes in the Netherlands," Working Paper Series 2009:28, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  3. Mildred E. Warner & Raymond Gradus, 2009. "The Consequences of Implementing a Child Care Voucher: Evidence from Australia, The Netherlands and USA," Tinbergen Institute Discussion Papers 09-078/3, Tinbergen Institute.
  4. Y.E. Akgündüz & J. Plantenga, 2013. "Competition for a better future? Effects of competition on child care quality," Working Papers 13-14, Utrecht School of Economics.

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