TY - JOUR
T1 - The impact of regulations on the supply and quality of care in child care markets
AU - Hotz, V. Joseph
AU - Xiao, Mo
PY - 2011/8
Y1 - 2011/8
N2 - We examine the impact of state child care regulations on the supply and quality of care in child care markets. We exploit panel data on both individual establishments and local markets to control for state, time, and, where possible, establishment-specific fixed effects to mitigate the potential bias due to policy endogeneity. We find that the imposition of regulations reduces the number of center-based child care establishments, especially in lower income markets. However, such regulations increase the quality of services provided, especially in higher income areas. Thus, there are winners and losers from the regulation of child care services.
AB - We examine the impact of state child care regulations on the supply and quality of care in child care markets. We exploit panel data on both individual establishments and local markets to control for state, time, and, where possible, establishment-specific fixed effects to mitigate the potential bias due to policy endogeneity. We find that the imposition of regulations reduces the number of center-based child care establishments, especially in lower income markets. However, such regulations increase the quality of services provided, especially in higher income areas. Thus, there are winners and losers from the regulation of child care services.
UR - http://www.scopus.com/inward/record.url?scp=84860389541&partnerID=8YFLogxK
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U2 - 10.1257/aer.101.5.1775
DO - 10.1257/aer.101.5.1775
M3 - Article
AN - SCOPUS:84860389541
VL - 101
SP - 1775
EP - 1805
JO - American Economic Review
JF - American Economic Review
SN - 0002-8282
IS - 5
ER -