Preferences for Childcare Policies: Theory and Evidence
Humboldt University of Berlin - Faculty of Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
DIW Berlin, German Institute for Economic Research; Institute for the Study of Labor (IZA)
DIW Berlin Discussion Paper No. 827
We analyse preferences for public, private or mixed provision of childcare theoretically and empirically. We model childcare as a publicly provided private good. Richer households should prefer private provision to either pure public or mixed provision. If public provision redistributes from rich to poor, they should favour mixed over pure public provision, but if public provision redistributes from poor to rich, the rich and poor might favour mixed provision while the middle class favour public provision ('ends against the middle'). Using estimates for household preferences from survey data, we find no support for the ends-against-the-middle result.
Number of Pages in PDF File: 43
Keywords: childcare, redistribution, political preferences, public provision of private goods
JEL Classification: J13, D72, H42, D19working papers series
Date posted: June 27, 2009
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