Effects of Child-Care Vouchers on Price, Quantity, and Provider Turnover in Private-Care Markets

Won Fy Lee, Aaron Sojourner, Elizabeth E. Davis and Jonathan Borowsky

Journal of Human Capital, 2025, vol. 19, issue 1, 1 - 30

Abstract: We harness changes in funding for a voucher that subsidizes private child-care services to quantify funding effects on local service capacity and prices. We also estimate how increased funding affects provider entry rate, exit rate, and highly rated provider market share. The evidence shows that an additional US$100 in private voucher funding per local young child would (1) raise the number of private-provider slots by 0.024 per young child, (2) raise average prices by US$0.56 per week, driven by a price increase among incumbents, and (3) induce provider entry by 0.4 percentage points. The estimates imply elastic supply, estimated at 11.6; funding expands slots with only limited price increases.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://dx.doi.org/10.1086/734085 (application/pdf)
http://dx.doi.org/10.1086/734085 (text/html)
Access to the online full text or PDF requires a subscription.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ucp:jhucap:doi:10.1086/734085

Access Statistics for this article

More articles in Journal of Human Capital from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().