The Kindergarten Attendance Allowance In Hungary - An evaluation of a conditional cash transfer program

Gabor Kertesi and Gabor Kezdi

No 1314, Budapest Working Papers on the Labour Market from Institute of Economics, Centre for Economic and Regional Studies

Abstract: This paper evaluates the kindergarten attendance allowance program in Hungary, a conditional cash transfer (CTT) program introduced in 2009 that aimed to increase kindergarten enrollment of disadvantaged children aged 3 and 4. Administration of the program was decentralized, and we make use of the substantial regional variation in program take-up across municipalities to estimate the program's effect on enrollment rates. We show modest but non-negligible effects, despite problems related to the manner of the program's implementation. We also show that the effects were significantly stronger in areas characterized by an excess supply of kindergarten slots. The results testify to the potential of CCT programs to create demand for child-care services among disadvantaged families; however, the results also highlight the importance of creating an adequate supply of kindergarten facilities where needed.

Keywords: kindergarten; conditional cash transfer (CTT) program; Hungary (search for similar items in EconPapers)
JEL-codes: I20 I38 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2013-09
New Economics Papers: this item is included in nep-ure
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