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

Paulo S. R. Bastos, Odd Rune Straume, Paulo S. R. Bastos and Odd Rune Straume
Authors registered in the RePEc Author Service: Odd Rune Straume and Paulo Bastos

No 7573, Policy Research Working Paper Series from The World Bank

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.

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 (search for similar items in EconPapers)
Date: 2016-02-22
New Economics Papers: this item is included in nep-edu and nep-ure
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Citations: View citations in EconPapers (3)

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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? (2013)
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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