The Demand for Quality in Child Care

Journal of Political Economy, Vol. 106, No. 1, February 1998

Posted: 3 Feb 1998

See all articles by David M. Blau

David M. Blau

University of North Carolina (UNC) at Chapel Hill - Department of Economics; IZA Institute of Labor Economics

Alison P. Hagy

U.S. Census Bureau - Center for Economic Studies

Abstract

We estimate a model of demand for quality-related attributes of child care: group size, staff/child ratio, and provider training. The model is estimated jointly with equations for mode, expenditure on and hours of care, and the mother's labor supply. The results show that a lower price of child care in a particular mode leads to substitution toward that mode and an increase in the use of paid child care. A decrease in the price of care causes an increase in hours of care demanded and a decrease in the demand for quality-related attributes. Income effects on demand for quality are small.

JEL Classification: J13, J22

Suggested Citation

Blau, David M. and Hagy, Alison P., The Demand for Quality in Child Care. Journal of Political Economy, Vol. 106, No. 1, February 1998, Available at SSRN: https://ssrn.com/abstract=54240

David M. Blau (Contact Author)

University of North Carolina (UNC) at Chapel Hill - Department of Economics ( email )

Gardner Hall
Chapel Hill, NC 27599
United States
919-966-3962 (Phone)
919-966-4986 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Alison P. Hagy

U.S. Census Bureau - Center for Economic Studies ( email )

4700 Silver Hill Road
Washington, DC 20233
United States

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