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Public versus Private Provision of Daycare: An Experimental Evaluation

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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 of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp3009
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    References listed on IDEAS

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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.
    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.

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    More about this item

    Keywords

    social experimentation; vouchers; daycare use; labor force participation;
    All these keywords.

    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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