Abstract
In this article we present quasi-experimental evidence on the relation between
child care subsidies and child care quality. We exploit the difference in fund-
ing of private and public centers in the Netherlands. A recent subsidy cut
reduced funding for private centers while funding for public centers was unaf-
fected. The quality measurements are from a panel survey in which centers'
quality was evaluated through classroom assessments by trained observers.
Using differences-in-differences we find that the subsidy reduction caused a
statistically significant decrease in quality of one fifth of a standard deviation.
We also present results for nonlinear differences-in-differences estimators. The
decline in quality is robust across specifications and appears to be driven by a
decline in the middle of the distribution. A limitation of our data set is that
our pre-reform period is short, so that we cannot perform pre-reform placebo
tests.
child care subsidies and child care quality. We exploit the difference in fund-
ing of private and public centers in the Netherlands. A recent subsidy cut
reduced funding for private centers while funding for public centers was unaf-
fected. The quality measurements are from a panel survey in which centers'
quality was evaluated through classroom assessments by trained observers.
Using differences-in-differences we find that the subsidy reduction caused a
statistically significant decrease in quality of one fifth of a standard deviation.
We also present results for nonlinear differences-in-differences estimators. The
decline in quality is robust across specifications and appears to be driven by a
decline in the middle of the distribution. A limitation of our data set is that
our pre-reform period is short, so that we cannot perform pre-reform placebo
tests.
Original language | English |
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Publisher | UU USE Tjalling C. Koopmans Research Institute |
Pages | 1-28 |
Number of pages | 28 |
Volume | 15-08 |
Publication status | Published - 2015 |
Publication series
Name | Discussion paper series |
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Publisher | Tjalling C. Koopmans Research Institute |
No. | 08 |
Volume | 15 |
ISSN (Electronic) | 2666-8238 |
Keywords
- child care subsidies
- child care quality
- DID
- CIC