IDEAS home Printed from https://ideas.repec.org/p/use/tkiwps/1318.html
   My bibliography  Save this paper

Cutting from the future? Impact of a subsidy reduction on child care quality in the Netherlands

Author

Listed:
  • Y.E. Akgündüz
  • E. Jongen
  • P.P.M. Leseman
  • J. Plantenga

Abstract

High quality child care has been consistently linked with child development and future life outcomes. We examine how process quality in child care centers is influenced by the reduction of child care subsidies. The analysis is based on a 2012 reduction in subsidies for Dutch parents. Exploiting the different types of funding for child care centers in the Netherlands, we provide linear and non-linear difference-in-difference estimates of the effects subsidy cuts have on child care quality. The results show that the subsidy reduction had a negative effect on quality, and the effects are especially strong for higher quality centers.

Suggested Citation

  • Y.E. Akgündüz & E. Jongen & P.P.M. Leseman & J. Plantenga, 2013. "Cutting from the future? Impact of a subsidy reduction on child care quality in the Netherlands," Working Papers 13-18, Utrecht School of Economics.
    • Handle: RePEc:use:tkiwps:1318
    as

    Download full text from publisher

    File URL: https://dspace.library.uu.nl/bitstream/handle/1874/290873/13-18.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Martin R. West & Ludger Woessmann, 2010. "'Every Catholic Child in a Catholic School': Historical Resistance to State Schooling, Contemporary Private Competition and Student Achievement across Countries," Economic Journal, Royal Economic Society, vol. 120(546), pages 229-255, August.
    2. Herbst, Chris M. & Tekin, Erdal, 2010. "Child care subsidies and child development," Economics of Education Review, Elsevier, vol. 29(4), pages 618-638, August.
    3. Michael Baker & Jonathan Gruber & Kevin Milligan, 2008. "Universal Child Care, Maternal Labor Supply, and Family Well-Being," Journal of Political Economy, University of Chicago Press, vol. 116(4), pages 709-745, August.
    4. Raquel Bernal & Michael P. Keane, 2011. "Child Care Choices and Children's Cognitive Achievement: The Case of Single Mothers," Journal of Labor Economics, University of Chicago Press, vol. 29(3), pages 459-512.
    5. Raj Chetty & John N. Friedman & Nathaniel Hilger & Emmanuel Saez & Diane Whitmore Schanzenbach & Danny Yagan, 2011. "How Does Your Kindergarten Classroom Affect Your Earnings? Evidence from Project Star," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 126(4), pages 1593-1660.
    6. Heckman, James J. & Moon, Seong Hyeok & Pinto, Rodrigo & Savelyev, Peter A. & Yavitz, Adam, 2010. "The rate of return to the HighScope Perry Preschool Program," Journal of Public Economics, Elsevier, vol. 94(1-2), pages 114-128, February.
    7. Baker, Michael, 2011. "Universal Early Childhood Interventions: What is the Evidence Base?," CLSSRN working papers clsrn_admin-2011-29, Vancouver School of Economics, revised 28 Nov 2011.
    8. Datta Gupta, Nabanita & Simonsen, Marianne, 2010. "Non-cognitive child outcomes and universal high quality child care," Journal of Public Economics, Elsevier, vol. 94(1-2), pages 30-43, February.
    9. Bettendorf, Leon J.H. & Jongen, Egbert L.W. & Muller, Paul, 2015. "Childcare subsidies and labour supply — Evidence from a large Dutch reform," Labour Economics, Elsevier, vol. 36(C), pages 112-123.
    10. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    11. Herbst, Chris M., 2013. "The impact of non-parental child care on child development: Evidence from the summer participation “dip”," Journal of Public Economics, Elsevier, vol. 105(C), pages 86-105.
    12. Gordon Cleveland & Michael Krashinsky, 2009. "The nonprofit advantage: Producing quality in thick and thin child care markets," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 28(3), pages 440-462.
    13. Naci Mocan, 2007. "Can consumers detect lemons? An empirical analysis of information asymmetry in the market for child care," Journal of Population Economics, Springer;European Society for Population Economics, vol. 20(4), pages 743-780, October.
    14. Tarjei Havnes & Magne Mogstad, 2011. "No Child Left Behind: Subsidized Child Care and Children's Long-Run Outcomes," American Economic Journal: Economic Policy, American Economic Association, vol. 3(2), pages 97-129, May.
    15. Havnes, Tarjei & Mogstad, Magne, 2011. "Money for nothing? Universal child care and maternal employment," Journal of Public Economics, Elsevier, vol. 95(11), pages 1455-1465.
    16. Michael Baker, 2011. "Innis Lecture: Universal early childhood interventions: what is the evidence base?," Canadian Journal of Economics, Canadian Economics Association, vol. 44(4), pages 1069-1105, November.
    17. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eva Lloyd, 2014. "Can Government Intervention in Childcare be Justified?," Economic Affairs, Wiley Blackwell, vol. 34(3), pages 402-405, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Emre Akgunduz & Egbert Jongen & Paul P.M. Leseman & Janneke Plantenga, 2015. "Quasi-experimental evidence on the relation between child care subsidies and child care quality," CPB Discussion Paper 310, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Anna Busse & Christina Gathmann, 2018. "Free Daycare and Its Effects on Children and Their Families," SOEPpapers on Multidisciplinary Panel Data Research 958, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Emre Akgunduz & Egbert Jongen & Paul P.M. Leseman & Janneke Plantenga, 2015. "Quasi-experimental evidence on the relation between child care subsidies and child care quality," CPB Discussion Paper 310.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    4. Y.E. Akgündüz & E. Jongen & Paul P M Leseman & J. Plantenga, 2015. "Quasi-experimental evidenceon the relationbetween child care subsidiesand child care quality," Working Papers 15-08, Utrecht School of Economics.
    5. Havnes, Tarjei & Mogstad, Magne, 2015. "Is universal child care leveling the playing field?," Journal of Public Economics, Elsevier, vol. 127(C), pages 100-114.
    6. Lauber, Verena & Thomas, Lampert, 2014. "The Effect of Early Universal Daycare on Child Weight Problems," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100399, Verein für Socialpolitik / German Economic Association.
    7. Thomas Cornelissen & Christian Dustmann & Anna Raute & Uta Schönberg, 2018. "Who Benefits from Universal Child Care? Estimating Marginal Returns to Early Child Care Attendance," Journal of Political Economy, University of Chicago Press, vol. 126(6), pages 2356-2409.
    8. Hideo Akabayashi & TIm Ruberg & Chizuru Shikishima & Jun Yamashita, 2023. "Education-Oriented and Care-Oriented Preschools:Implications on Child Development," Keio-IES Discussion Paper Series 2023-009, Institute for Economics Studies, Keio University.
    9. Akabayashi, Hideo & Ruberg, Tim & Shikishima, Chizuru & Yamashita, Jun, 2023. "Education-oriented and care-oriented preschools: Implications on child development," Labour Economics, Elsevier, vol. 84(C).
    10. Bullinger, Lindsey Rose, 2019. "The Effect of Paid Family Leave on Infant and Parental Health in the United States," Journal of Health Economics, Elsevier, vol. 66(C), pages 101-116.
    11. Peter, Frauke H. & Schober, Pia S. & Spiess, Katharina C., 2016. "Early Birds in Day Care: The Social Gradient in Starting Day Care and Children’s Non-cognitive Skills," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 62(4), pages 725-751.
    12. Carta, Francesca & Rizzica, Lucia, 2018. "Early kindergarten, maternal labor supply and children's outcomes: Evidence from Italy," Journal of Public Economics, Elsevier, vol. 158(C), pages 79-102.
    13. Berlinski,Samuel G. & Ferreyra,Maria Marta & Flabbi,Luca & Martin,Juan David, 2020. "Child Care Markets, Parental Labor Supply, and Child Development," Policy Research Working Paper Series 9427, The World Bank.
    14. Michael J. Kottelenberg & Steven F. Lehrer, 2018. "Does Quebec’s subsidized child care policy give boys and girls an equal start?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 51(2), pages 627-659, May.
    15. Kühnle, Daniel & Oberfichtner, Michael, 2017. "Does Early Child Care Attendance Influence Children's Cognitive and Non-Cognitive Skill Development?," IZA Discussion Papers 10661, Institute of Labor Economics (IZA).
    16. Drange, Nina & Havnes, Tarjei & Sandsør, Astrid M.J., 2016. "Kindergarten for all: Long run effects of a universal intervention," Economics of Education Review, Elsevier, vol. 53(C), pages 164-181.
    17. Barschkett, Mara & Spieß, C. Katharina & Ziege, Elena, 2021. "Intergenerational Effects of Grandparental Care on Children and Parents," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242397, Verein für Socialpolitik / German Economic Association.
    18. Drange, Nina & Havnes, Tarjei, 2015. "Child Care Before Age Two and the Development of Language and Numeracy: Evidence from a Lottery," IZA Discussion Papers 8904, Institute of Labor Economics (IZA).
    19. Sneha Elango & Jorge Luis García & James J. Heckman & Andrés Hojman, 2015. "Early Childhood Education," NBER Chapters, in: Economics of Means-Tested Transfer Programs in the United States, Volume 2, pages 235-297, National Bureau of Economic Research, Inc.
    20. Apps, Patricia & Mendolia, Silvia & Walker, Ian, 2013. "The impact of pre-school on adolescents’ outcomes: Evidence from a recent English cohort," Economics of Education Review, Elsevier, vol. 37(C), pages 183-199.

    More about this item

    Keywords

    child care; ECEC; quality; subsidy;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:use:tkiwps:1318. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marina Muilwijk (email available below). General contact details of provider: https://edirc.repec.org/data/eiruunl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.