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The Impact of Regulations on the Supply and Quality of Care in Child Care Markets

Publication ,  Journal Article
Hotz, VJ; Xiao, M
Published in: American Economic Review
August 2011

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. (JEL H75, J13, L51, L84)

Duke Scholars

Published In

American Economic Review

Publication Date

August 2011

Volume

101

Issue

5

Start / End Page

1775 / 1805

Related Subject Headings

  • Economics
  • 15 Commerce, Management, Tourism and Services
  • 14 Economics
 

Citation

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ICMJE
MLA
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Hotz, V. J., & Xiao, M. (2011). The Impact of Regulations on the Supply and Quality of Care in Child Care Markets. American Economic Review, 101(5), 1775–1805.
Hotz, V Joseph, and Mo Xiao. “The Impact of Regulations on the Supply and Quality of Care in Child Care Markets.” American Economic Review 101, no. 5 (August 2011): 1775–1805.
Hotz VJ, Xiao M. The Impact of Regulations on the Supply and Quality of Care in Child Care Markets. American Economic Review. 2011 Aug;101(5):1775–805.
Hotz, V. Joseph, and Mo Xiao. “The Impact of Regulations on the Supply and Quality of Care in Child Care Markets.” American Economic Review, vol. 101, no. 5, Aug. 2011, pp. 1775–805.
Hotz VJ, Xiao M. The Impact of Regulations on the Supply and Quality of Care in Child Care Markets. American Economic Review. 2011 Aug;101(5):1775–1805.

Published In

American Economic Review

Publication Date

August 2011

Volume

101

Issue

5

Start / End Page

1775 / 1805

Related Subject Headings

  • Economics
  • 15 Commerce, Management, Tourism and Services
  • 14 Economics