The Supply of Quality in Child Care Centers

  title={The Supply of Quality in Child Care Centers},
  author={David M. Blau and H. Naci Mocan},
We use data from a sample of child care centers to estimate the relationships between cost and child care quality, and between revenue and quality. We use a measure of child care quality, designed by developmental psychologists, that is positively associated with child development. Taking the estimated cost-quality and revenue-quality relationships as given, we estimate the objective functions of firms and compute the quality supply function. The results indicate that the supply of quality is… CONTINUE READING
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