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Preschool education in Brazil : does public supply crowd out private enrollment ?

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  • Bastos,Paulo S. R.
  • Straume,Odd Rune
  • Bastos,Paulo S. R.
  • Straume,Odd Rune

Abstract

This paper examines whether an expansion in the supply of public preschool crowds out private enrollment. The paper uses rich data for municipalities in Brazil from 2000 to 2006, where federal transfers to local governments change discontinuously with given population thresholds. The results from a regression-discontinuity design reveal that larger federal transfers lead to a significant expansion of local public preschool services, but show no evidence of crowding out of private enrollment. This finding is consistent with a theory in which households differ in their willingness to pay for preschool services, and private suppliers optimally adjust prices in response to an expansion of lower-quality, free-of-charge public supply.

Suggested Citation

  • Bastos,Paulo S. R. & Straume,Odd Rune & Bastos,Paulo S. R. & Straume,Odd Rune, 2016. "Preschool education in Brazil : does public supply crowd out private enrollment ?," Policy Research Working Paper Series 7573, The World Bank.
  • Handle: RePEc:wbk:wbrwps:7573
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    Cited by:

    1. Samuel Berlinski & Norbert Schady, 2015. "Daycare Services: It’s All about Quality," Palgrave Macmillan Books, in: Samuel Berlinski & Norbert Schady (ed.), The Early Years, chapter 4, pages 91-119, Palgrave Macmillan.
    2. Pertti Haaparanta & Ravi Kanbur & Tuuli Paukkeri & Jukka Pirttilä & Matti Tuomala, 2022. "Promoting education under distortionary taxation: equality of opportunity versus welfarism," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 20(2), pages 281-297, June.
    3. M. Caridad Araujo & Yyannu Cruz-Aguayo & Analia Jaimovich & Sharon Lynn Kagan, 2015. "Drawing Up an Institutional Architecture," IDB Publications (Book Chapters), in: Samuel Berlinski & Norbert Schady (ed.), The Early Years: Child Well-Being and the Role of Public Policy, edition 1, chapter 7, pages 179-202, Inter-American Development Bank.

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    More about this item

    Keywords

    Early Childhood Development; Reproductive Health; Early Child and Children'; Early Child and Children's Health; Nutrition; Effective Schools and Teachers; Educational Institutions&Facilities; Educational Sciences; Small Private Water Supply Providers; Town Water Supply and Sanitation; Sanitation and Sewerage; Engineering; Water Supply and Sanitation Economics; Water and Human Health; Health and Sanitation; Sanitary Environmental Engineering; Environmental Engineering; Tertiary Education;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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