Applications of Demand Estimation to the Child Care Market

Loading...
Thumbnail Image

Persistent link to this item

Statistics
View Statistics

Journal Title

Journal ISSN

Volume Title

Title

Applications of Demand Estimation to the Child Care Market

Published Date

2020-07

Publisher

Type

Thesis or Dissertation

Abstract

This dissertation presents three studies that apply discrete choice demand estimation techniques to policy-focused questions regarding the Minnesota child care market. The first study analyzes provider quality ratings provided through Minnesota's Parent Aware program. The demand system is estimated on provider level data using the method of Berry et al. (1995). Welfare estimates are computed for the value of the ratings to consumers in different locations. Variation in local value of the ratings is driven by density of providers. The value of the ratings is high in most areas with a high concentration of low-income consumers. The second study uses administrative micro-data on subsidized consumers from Minnesota's Child Care Assistance Program, focusing on the role of distance in child care choice. A nested logit model is estimated that simultaneously models the choice of individual provider and the choice between center-based and family providers. The results provide new evidence on the importance of proximity and the geographic scope of child care markets. We present two applications. First, we present a construct for measuring the geographic scope for a policy intervention and analyze how it varies in urban, suburban, and rural areas. Second, we show that differences in what types of providers are available nearby explains most of the difference between White, Black, and Hispanic households in the use of center-based care. The third study uses a simplified version of the same nested logit choice model as a lens to analyze trends in use of family providers. We simulate counterfactuals that measure the importance of different factors, showing that decline in the availability of family providers and changes in the location and demographic composition of the CCAP population are the most important factors explaining the decline in the rate of use of family providers by CCAP consumers.

Keywords

Description

University of Minnesota Ph.D. dissertation. July 2020. Major: Economics. Advisor: Thomas Holmes. 1 computer file (PDF); vi, 91 pages.

Related to

Replaces

License

Collections

Series/Report Number

Funding information

Isbn identifier

Doi identifier

Previously Published Citation

Suggested citation

Borowsky, Jonathan. (2020). Applications of Demand Estimation to the Child Care Market. Retrieved from the University Digital Conservancy, https://hdl.handle.net/11299/216412.

Content distributed via the University Digital Conservancy may be subject to additional license and use restrictions applied by the depositor. By using these files, users agree to the Terms of Use. Materials in the UDC may contain content that is disturbing and/or harmful. For more information, please see our statement on harmful content in digital repositories.