Please use this identifier to cite or link to this item: http://hdl.handle.net/1822/25431

TitlePreschool education in Brazil: does public supply crowd out private enrollment?
Author(s)Bastos, Paulo
Straume, Odd Rune
KeywordsPreschool education
Private and public provision
Crowding-out
Issue date2013
PublisherUniversidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)
Abstract(s)We examine if an expansion in the supply of public preschool crowds-out private enrollment using rich data for municipalities in Brazil from 2000-2006, where federal transfers to local governments change discontinuously with given population thresholds. Results from a regression-discontinuity design reveal that larger federal transfers lead to a significant expansion of local public preschool services, but show no effects on the quantity or quality of private provision. These findings are consistent with a theory in which households differ in willingness-to-pay for preschool services, and private suppliers optimally adjust prices in response to an expansion of lower-quality, free-of-charge public supply.
TypeWorking paper
URIhttp://hdl.handle.net/1822/25431
Publisher versionhttp://www.nipe.eeg.uminho.pt/Uploads/WP_2013/NIPE_WP_16_2013.pdf
Peer-Reviewedno
AccessOpen access
Appears in Collections:NIPE - Documentos de Trabalho

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