Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/40161
Authors: 
Muehler, Grit
Year of Publication: 
2010
Series/Report no.: 
ZEW Discussion Papers 08-077 [rev.]
Abstract: 
Universal child care that is available, affordable and of good quality is regarded as a key instrument of a country's social and labor market policy. As full public involvement in the provision of child care is costly, licensing non-public providers can enlarges parental choice and relieve public funds. This paper analyzes the consequences of universal, mixed-market provision of child care for availability and quality by directly comparing public providers to various non-public providers such as welfare organizations, churches and commercial providers. Controlling for regional and socio-demographic differences in participation, results show that non-religious and in particular commercial providers serve the under three-year-olds and respond to the demand for full-day care. Furthermore, they employ more personnel with a tertiary education. Hence, commercial providers can - at least when covering rather low market shares - increase parental choice and contribute to the provision of high-quality child care.
Subjects: 
universal child care
mixed industry
public and private sector
JEL: 
J13
H44
L33
Document Type: 
Working Paper

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