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Matching Disadvantaged Children to Day Care: Evidence from a Centralized Platform

Author

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  • De Groote, Olivier

    (Toulouse School of Economics)

  • Rho, Minyoung

Abstract

We use data from a platform that centralizes a day care matching process. We estimate parents' preferences and nursery priorities by analyzing parents' rank-ordered lists and nurseries' acceptance decisions. We account for strategic behavior by using a novel estimation approach inspired by the dynamic discrete choice framework. We use the estimates to evaluate centralized matching policies tailored to the day care setting. We compare mechanisms and assess the effects of subsidies, increased capacity, and affirmative action. We find that affirmative action policies are crucial for boosting the participation of disadvantaged children, though they increase segregation due to location-based preferences.

Suggested Citation

  • De Groote, Olivier & Rho, Minyoung, 2024. "Matching Disadvantaged Children to Day Care: Evidence from a Centralized Platform," IZA Discussion Papers 17547, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17547
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    More about this item

    Keywords

    day care; affirmative action; segregation; centralized matching markets; CCP estimation;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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