Improving the Allocation of Spots in Child Care Facilities for Toddlers in Germany: A Mechanism Design Approach

Sissa Carlsson () and Stephan Thomsen
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Sissa Carlsson: NIW Hannover, Leibniz Universität Hannover

No 8976, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The undersupply of spots in German daycare facilities for toddlers challenges parents' possibilities to work. To ease the situation, the government implemented a new law entitling every child between ages one and three to daycare supervision for about four hours per day. Nevertheless, the stressed situation of matching demand and supply does not only result from limited spaces but also from inefficient allocation. By means of simulations under different scenarios, we contrast a stylized version of decentralized allocation to a centralized allocation mechanism which applies a deferred-acceptance algorithm. This centralized system results in better and faster matches.

Keywords: allocation mechanism; deferred-acceptance algorithm; early education; child care (search for similar items in EconPapers)
JEL-codes: C78 D82 J13 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2015-04
New Economics Papers: this item is included in nep-edu and nep-gth
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Citations: View citations in EconPapers (10)

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