Preschool Education in Brazil: Does Public Supply Crowd Out Private Enrollment?

Paulo Bastos and Odd Rune Straume

No 4677, IDB Publications (Working Papers) from Inter-American Development Bank

Abstract: This paper examines whether 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.

JEL-codes: D12 I21 I28 L21 O15 (search for similar items in EconPapers)
Date: 2013-11
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https://publications.iadb.org/publications/english ... ivate-Enrollment.pdf (application/pdf)

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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Persistent link: https://EconPapers.repec.org/RePEc:idb:brikps:4677

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