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Public versus Private Provision of Daycare: An Experimental Evaluation

Author

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  • Viitanen, Tarja

    () (University of Otago)

Abstract

This paper provides experimental estimates of the impact of a voucher for private care within the Nordic system of universal provision of public care. The private daycare voucher acted as a significant boost for new daycare entrepreneurs to enter the market thus increasing the overall daycare provision in the municipalities participating in the experiment. In a market that was providing high-quality, low-cost public daycare, a voucher is nevertheless found to have a significant, positive effect for the use of private daycare with zero to negligible effects on the use of public care and labor force participation.

Suggested Citation

  • Viitanen, Tarja, 2007. "Public versus Private Provision of Daycare: An Experimental Evaluation," IZA Discussion Papers 3009, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp3009
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    References listed on IDEAS

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    1. Philip Hemmings & David Turner & Seija Parviainen, 2003. "Enhancing the Effectiveness of Public Spending in Finland," OECD Economics Department Working Papers 358, OECD Publishing.
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    5. Epple, Dennis & Romano, Richard E, 1996. "Public Provision of Private Goods," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 57-84, February.
    6. Besley, Timothy & Coate, Stephen, 1991. "Public Provision of Private Goods and the Redistribution of Income," American Economic Review, American Economic Association, vol. 81(4), pages 979-984, September.
    7. Meyer, Bruce D, 1995. "Natural and Quasi-experiments in Economics," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(2), pages 151-161, April.
    8. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762.
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    Cited by:

    1. Dolores Messer & Stefan C. Wolter, 2009. "Money Matters - Evidence from a Large-Scale Randomized Field Experiment with Vouchers for Adult Training," CESifo Working Paper Series 2548, CESifo Group Munich.
    2. C. Katharina Spieß, 2011. "Vereinbarkeit von Familie und Beruf – wie wirksam sind deutsche „Care Policies“?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 12(s1), pages 4-27, May.
    3. Egbert Henrik & Hildenbrand Andreas, 2012. "Der Coupon-Handelsansatz als Modell für eine subjektbezogene Finanzierung der Kinderbetreuung / The Coupon Trading Approach as a Model for a Subject-based Financing System of Early Childhood Education," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(2), pages 116-128, April.

    More about this item

    Keywords

    social experimentation; vouchers; daycare use; labor force participation;

    JEL classification:

    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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