Public versus Private Provision of Daycare: An Experimental Evaluation

Tarja Viitanen

No 3009, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper provides experimental estimates of the impact of a voucher for private care within the Nordic system of universal provision of public care. The private daycare voucher acted as a significant boost for new daycare entrepreneurs to enter the market thus increasing the overall daycare provision in the municipalities participating in the experiment. In a market that was providing high-quality, low-cost public daycare, a voucher is nevertheless found to have a significant, positive effect for the use of private daycare with zero to negligible effects on the use of public care and labor force participation.

Keywords: social experimentation; vouchers; daycare use; labor force participation (search for similar items in EconPapers)
JEL-codes: H42 J13 J2 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2007-08
New Economics Papers: this item is included in nep-exp
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published - published as 'Child care voucher and labour market behaviour: experimental evidence from Finland' in: Applied Economics, 2011, 43 (23), 3203 - 3212

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