Building An ex-ante Simulation Model for Estimating the Capacity Impact, Benefit Incidence, and Cost Effectiveness of Child Care Subsidies in Turkey

Public financing of privately provided child care can allow for 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 s...

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Main Authors:	Aran, Meltem A., Munoz‑Boudet, Ana Maria, Aktakke, Nazli
Format:	Journal Article
Published:	Springer 2019
Subjects:	DAY CARE CENTERS EDUCATION POLICY SUBSIDIES EVIDENCE-BASED POLICY VOUCHERS POVERTY
Online Access:	http://hdl.handle.net/10986/31367

id	okr-10986-31367
recordtype	oai_dc
spelling	okr-10986-313672021-05-25T10:54:37Z Building An ex-ante Simulation Model for Estimating the Capacity Impact, Benefit Incidence, and Cost Effectiveness of Child Care Subsidies in Turkey Aran, Meltem A. Munoz‑Boudet, Ana Maria Aktakke, Nazli DAY CARE CENTERS EDUCATION POLICY SUBSIDIES EVIDENCE-BASED POLICY VOUCHERS POVERTY Public financing of privately provided child care can allow for 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 combines a supply-side provider level and a demand-side household model in one simulation. The paper considers investment vs. operational monthly grants to child care providers, combinations of 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 microdata on the costs and pricing structure of child care providers, as well as household data with variables on household welfare and child care utilization. 2019-03-11T18:34:55Z 2019-03-11T18:34:55Z 2018-11-24 Journal Article International Journal of Child Care and Education Policy http://hdl.handle.net/10986/31367 CC BY 4.0 http://creativecommons.org/licenses/by/4.0 World Bank Springer Publications & Research :: Journal Article Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
topic	DAY CARE CENTERS EDUCATION POLICY SUBSIDIES EVIDENCE-BASED POLICY VOUCHERS POVERTY
spellingShingle	DAY CARE CENTERS EDUCATION POLICY SUBSIDIES EVIDENCE-BASED POLICY VOUCHERS 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 in Turkey
description	Public financing of privately provided child care can allow for 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 combines a supply-side provider level and a demand-side household model in one simulation. The paper considers investment vs. operational monthly grants to child care providers, combinations of 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 microdata 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	Journal Article
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 in Turkey
title_short	Building An ex-ante Simulation Model for Estimating the Capacity Impact, Benefit Incidence, and Cost Effectiveness of Child Care Subsidies in Turkey
title_full	Building An ex-ante Simulation Model for Estimating the Capacity Impact, Benefit Incidence, and Cost Effectiveness of Child Care Subsidies in Turkey
title_fullStr	Building An ex-ante Simulation Model for Estimating the Capacity Impact, Benefit Incidence, and Cost Effectiveness of Child Care Subsidies in Turkey
title_full_unstemmed	Building An ex-ante Simulation Model for Estimating the Capacity Impact, Benefit Incidence, and Cost Effectiveness of Child Care Subsidies in Turkey
title_sort	building an ex-ante simulation model for estimating the capacity impact, benefit incidence, and cost effectiveness of child care subsidies in turkey
publisher	Springer
publishDate	2019
url	http://hdl.handle.net/10986/31367
_version_	1764474166707224576

Building An ex-ante Simulation Model for Estimating the Capacity Impact, Benefit Incidence, and Cost Effectiveness of Child Care Subsidies in Turkey

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