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...
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| Format: | Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2017
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| 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 |
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okr-10986-258162021-06-08T14:42:46Z 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 Aran, Meltem A. Munoz-Boudet, Ana Maria Aktakke, Nazli day care centers subsidies vouchers education finance poverty 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. 2017-01-05T22:15:29Z 2017-01-05T22:15:29Z 2016-12 Working Paper 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 English en_US Policy Research Working Paper;No. 7917 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Europe and Central Asia Turkey |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
day care centers subsidies vouchers education finance poverty |
| spellingShingle |
day care centers subsidies vouchers education finance poverty Aran, Meltem A. Munoz-Boudet, Ana Maria Aktakke, Nazli 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 |
| geographic_facet |
Europe and Central Asia Turkey |
| relation |
Policy Research Working Paper;No. 7917 |
| description |
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. |
| format |
Working Paper |
| author |
Aran, Meltem A. Munoz-Boudet, Ana Maria Aktakke, Nazli |
| author_facet |
Aran, Meltem A. Munoz-Boudet, Ana Maria Aktakke, Nazli |
| author_sort |
Aran, Meltem A. |
| title |
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 |
| title_short |
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 |
| title_full |
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 |
| title_fullStr |
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 |
| title_full_unstemmed |
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 |
| title_sort |
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 |
| publisher |
World Bank, Washington, DC |
| publishDate |
2017 |
| url |
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 |
| _version_ |
1764460222389157888 |