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

Paulo Bastos and Odd Rune Straume

No 16/2013, NIPE Working Papers from NIPE - Universidade do Minho

Abstract: We examine if an expansion in the supply of public preschool crowds-out private enrollment using rich data for municipalities in Brazil from 2000-2006, where federal transfers to local governments change discontinuously with given population thresholds. Results from a regression-discontinuity design reveal that larger federal transfers lead to a significant expansion of local public preschool services, but show no effects on the quantity or quality of private provision. These findings are consistent with a theory in which households differ in 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.

Keywords: Preschool education; private and public provision; crowding-out. (search for similar items in EconPapers)
JEL-codes: D12 I21 I28 L21 O15 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-edu, nep-lam, nep-nps, nep-pbe and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Preschool Education in Brazil: Does Public Supply Crowd Out Private Enrollment? (2016)
Working Paper: Preschool education in Brazil: does public supply crowd out private enrollment ? (2016)
Working Paper: Preschool Education in Brazil: Does Public Supply Crowd Out Private Enrollment? (2013)
Working Paper: Preschool Education in Brazil: Does Public Supply Crowd Out Private Enrollment? (2013)
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