National Child Care Survey 1990: Parent Study

Hofferth, Sandra L.; Brayfield, April; Deich, Sharon; Holcomb, Pamela; Glantz, Frederic

doi:10.1037/e386732004-001

Cited by 96 publications

(173 citation statements)

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“…6 4 We exclude the possibility that households residing in one district enroll their children in the other. This assumption is justi ed by empirical evidence suggesting that few parents will travel long distances to send their children to child care; see Chipty (1995) and Hofferth et al (1991) for the United States and Paes de Barros et al (2009) for Rio de Janeiro, Brazil.…”

Section: Household Preferences and Demandmentioning

confidence: 99%

Entry and Quality Choices in Child Care Markets

Bastos

Cristia

2010

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractMany developing countries have adopted the market approach for expanding the supply of child care, but little is known about the economic behavior of independent providers. This paper draws on uniquely rich administrative data on child care centers and their inputs from São Paulo to examine the role of local household income in shaping the entry and quality choices of private suppliers. It documents three main facts: (1) entry rates are considerably higher in high-income districts; (2) the quality of provision-as measured by teachers' schooling, group size and equipment-is highly heterogeneous across space and increases systematically with local household income; and (3) a considerable share of centers operates below recommended (but not regulated) quality standards, especially in low-income districts. These ndings accord with a model in which heterogeneous providers optimally adjust the quality of care to the willingness to pay for quality of local consumers. Market-driven heterogeneity in the quality of provision across space is a key consideration for understanding the effect of regulations on the supply of child care.JEL Classi cations: D12, I21, I28, L21, L26, L51, O15 Keywords: Child care markets, Entry, Product quality, Minimum quality standards Acknowledgments We would like to thank, without implicating, Eric Verhoogen for very helpful comments on an earlier draft. We are also grateful to Joseph Hotz for graciously sharing with us the data on U.S. regulations and Lidia Ferraz from INEP for help with the Brazilian microdata. The views expressed in this paper are exclusively those of the authors and not those of the Inter-American Development Bank.

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Section: Household Preferences and Demandmentioning

confidence: 99%

Entry and Quality Choices in Child Care Markets

Bastos

Cristia

2010

SSRN Journal

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“…7 The number of center-based programs (as contrasted to home-based programs) rose 26% from 40,631 in 1987to 51,297 in 1992and then rose 21% to 62,054 in 1997(O'Neill & O'Connell, 2001. 8 Primarily small businesses, childcare centers compete in localized markets, as parents overwhelmingly prefer to have their children cared for in their own residential neighborhood (Chipty, 1995;Hofferth et al, 1991). This study focuses on childcare centers because NAEYC accreditation only applies to center-based programs.…”

Section: A Sketch Of the Childcare Marketmentioning

confidence: 99%

Is quality accreditation effective? Evidence from the childcare market

Xiao

2010

International Journal of Industrial Organization

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The ineffectiveness of a quality accreditation mechanism can be attributed to the inability of the accreditation status to provide consumers with information they do not already possess. I present a structural model of demand allowing consumers to infer quality from both accreditation status and firm reputation. I then estimate this model to assess the effectiveness and the impact of the national accreditation system for childcare centers on consumer welfare. My results suggest that disregarding the endogeneity of firms' accreditation choices significantly underestimates the effectiveness of the accreditation system. However, on average consumers do not gain much information beyond what they have inferred from a firm's reputation. The estimates of structural parameters are then used to quantify the value of this information to consumers.JEL: L15 (Information and Product Quality); L8 (Industry Studies: Services)

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“…Using the 1990 National Child Care Survey, Hofferth et al (1991) report that expenses, for families with children under five and who pay for child care, are 10 percent when the mother is employed and 6 percent when she is not. They also provide evidence that expenditure shares decline with income.…”

Section: Previous Evidence On Expenditure Sharesmentioning

confidence: 99%

“…First, it is difficult to compile data that simultaneously provides accurate information on child care expenses and family incomes. Second, conceptualizing the expenditure share is surprisingly complex, since parental employment and child care use are closely linked (Hofferth et al, 1991 andSmith, 2002), with the result that parents (particularly mothers) who work typically utilize more non-parental care than those who do not. 2 One implication is that employment often raises both the numerator (expenses) and the denominator (family incomes) in the expenditure share equation.…”

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confidence: 99%

“…Our child care data comes from the wave 10 topical module covering March through June 1999; our income data comes from the corresponding core survey providing information on average incomes in the preceding four months. We also use data from the March Current Population Survey (CPS) to construct a measure of socioeconomic status (SES) that is based 1 Related research has previously been conducted by Hofferth et al (1991), Anderson and Levine (2000), Smith (2002), and Giannarelli and Barsimantov (2002), as detailed below. 2 Child care expenses also influence parental employment.…”

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confidence: 99%

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Family Expenditures on Child Care

Ruhm

2007

The B.E. Journal of Economic Analysis &Amp; Policy

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This study examines the child care "expenditure share," defined as child care expenses divided by after-tax income. We estimate that the average child under six years of age lives in a family that spends 4.9 percent of after-tax income on child care. However, this conceals wide variation: 63 percent of such children reside in families with no child care expenses and 10 percent are in families where the expenditure share exceeds 16 percent. The proportion of income devoted to child care is typically greater in single-parent than married-couple families but is not systematically related to a constructed measure of socioeconomic status. One reason for this is that disadvantaged families use lower cost modes and pay less per hour for given types of care. The expenditure share would be much less equal without low cost (presumably subsidized) formal care focused on needy families, as well as government tax and transfer policies that redistribute income towards them.

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National Child Care Survey 1990: Parent Study

Cited by 96 publications

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Entry and Quality Choices in Child Care Markets

Entry and Quality Choices in Child Care Markets

Is quality accreditation effective? Evidence from the childcare market

Family Expenditures on Child Care

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