Building an Ex Ante Simulation Model for Estimating the Capacity Impact, Benefit Incidence, and Cost Effectiveness of Child Care Subsidies : An Application Using Provider-Level Data from Turkey
Public financing of child care can allow for more equitable access to these services in places where public provision and capacity are low. However, the mechanisms of subsidy delivery will affect who benefits, and the overall cost effectiveness of...
| Main Authors: | , , |
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| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/779341481739875633/Building-an-ex-ante-simulation-model-for-estimating-the-capacity-impact-benefit-incidence-and-cost-effectiveness-of-child-care-subsidies-an-application-using-provider-level-data-from-Turkey http://hdl.handle.net/10986/25816 |
| Summary: | Public financing of child care can allow
for more equitable access to these services in places where
public provision and capacity are low. However, the
mechanisms of subsidy delivery will affect who benefits, and
the overall cost effectiveness of such subsidies. This paper
sets out an ex ante simulation model for estimating the
benefit incidence of expanded capacity and enrollments
resulting from different child care subsidy mechanisms. It
uses a supply-side provider level and a demand-side
household model, and combines the two models. The paper
considers investment grants to providers, operational
monthly grants to child care providers, combinations of the
investment and operational grants, and demand-side vouchers
to households. The model is applied to empirical data from
child care centers and households in Turkey. The results
reveal that the choice of the subsidy delivery model has a
strong bearing on the benefit incidence and cost
effectiveness of the subsidy. In the case of Turkey, where
significant supply-side constraints exist in the market, a
demand-side voucher system is shown to be the least
cost-effective subsidy delivery model. A targeted
demand-side voucher does not necessarily deliver the most
"pro-poor results," and combinations show
different benefits and costs. The proposed simulation model
can be applied in other country contexts, with the only data
requirements being micro data on the costs and pricing
structure of child care providers, as well as household data
with variables on household welfare and child care utilization. |
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