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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

  • 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
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Handle: RePEc:cpb:memodm:176
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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. H. Naci Mocan, 1995. "The Child Care Industry: Cost Functions, Efficiency, and Quality," NBER Working Papers 5293, National Bureau of Economic Research, Inc.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. Eric Maskin, 2003. "The Politician and the Judge: Accountability in Government," Theory workshop papers 505798000000000076, UCLA Department of Economics.
  8. 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.
  9. 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.
  10. Mocan, Naci & Tekin, Erdal, 2001. "Nonprofit Sector and Part-Time Work: An Analysis of Employer-Employee Matched Data of Child Care Workers," IZA Discussion Papers 408, Institute for the Study of Labor (IZA).
  11. Lakdawalla, Darius & Philipson, Tomas, 2006. "The nonprofit sector and industry performance," Journal of Public Economics, Elsevier, vol. 90(8-9), pages 1681-1698, September.
  12. 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.
  13. 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.
  14. 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.
  15. 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 337-50, March.
  16. Edward L. Glaeser, 2002. "The Governance of Not-For-Profit Firms," NBER Working Papers 8921, National Bureau of Economic Research, Inc.
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Cited by:

  1. 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.
  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.

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