Inefficiency in Childcare Production: Evidence from Italian Microdata

Luigi Brighi () and Paolo Silvestri ()
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Luigi Brighi: Università degli studi di Modena e Reggio Emilia
Paolo Silvestri: Università degli studi di Modena e Reggio Emilia

Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, 2019, vol. 5, issue 1, No 5, 103-133

Abstract: Abstract The paper provides an empirical analysis of production technology in the childcare sector and offers a comparative analysis of inefficiency between public and private day-care centres. Estimates of multi-output production technology and technical inefficiency are obtained in a stochastic frontier model by using cross-section micro-data from a region of northern Italy over the period 2007/8. We find that production exhibits increasing returns to scale and that separability between inputs and outputs is rejected. The average estimate of technical inefficiency is about 10% and public centres are more inefficient than private centres by 4.1% points.

Keywords: Childcare; Technical inefficiency; Stochastic Frontier analysis; Input-distance function (search for similar items in EconPapers)
JEL-codes: D H J (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1007/s40797-019-00087-y

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