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Improving the Allocation of Spots in Child Care Facilities for Toddlers in Germany: A Mechanism Design Approach

Author

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  • Carlsson, Sissa

    (NIW Hannover, Leibniz Universität Hannover)

  • Thomsen, Stephan L.

    (Leibniz University of Hannover)

Abstract

The undersupply of spots in German daycare facilities for toddlers challenges parents' possibilities to work. To ease the situation, the government implemented a new law entitling every child between ages one and three to daycare supervision for about four hours per day. Nevertheless, the stressed situation of matching demand and supply does not only result from limited spaces but also from inefficient allocation. By means of simulations under different scenarios, we contrast a stylized version of decentralized allocation to a centralized allocation mechanism which applies a deferred-acceptance algorithm. This centralized system results in better and faster matches.

Suggested Citation

  • Carlsson, Sissa & Thomsen, Stephan L., 2015. "Improving the Allocation of Spots in Child Care Facilities for Toddlers in Germany: A Mechanism Design Approach," IZA Discussion Papers 8976, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8976
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    References listed on IDEAS

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    Cited by:

    1. Henning Hermes & Philipp Lergetporer & Frauke Peter & Simon Wiederhold, 2021. "Behavioral Barriers and the Socioeconomic Gap in Child Care Enrollment," Discussion Papers of DIW Berlin 1970, DIW Berlin, German Institute for Economic Research.
    2. Hermes, Henning & Lergetporer, Philipp & Peter, Frauke & Wiederhold, Simon, 2021. "Behavioral Barriers and the Socioeconomic Gap in Child Care Enrollment," Discussion Paper Series in Economics 16/2021, Norwegian School of Economics, Department of Economics.
    3. Nadja Stroh-Maraun, 2020. "Pareto Efficiency in Weighted School Choice Problems," Working Papers Dissertations 64, Paderborn University, Faculty of Business Administration and Economics.
    4. Malte Sandner & Stephan L. Thomsen & Libertad González Luna, 2020. "Preventing child maltreatment: Beneficial side effects of public childcare provision," Economics Working Papers 1744, Department of Economics and Business, Universitat Pompeu Fabra.
    5. Henning Hermes & Philipp Lergetporer & Frauke Peter & Daniela Simon Wiederhold, 2021. "Behavioral Barriers and the Socioeconomic Gap in Child Care Enrollment," Munich Papers in Political Economy 15, TUM School of Governance at the Technical University of Munich.
    6. Britta Hoyer & Nadja Stroh-Maraun, 2020. "Stability in Weighted College Admissions Problems," Working Papers Dissertations 63, Paderborn University, Faculty of Business Administration and Economics.

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    More about this item

    Keywords

    allocation mechanism; deferred-acceptance algorithm; early education; child care;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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