The paper provides an empirical analysis of production technology in the childcare sector and offers a comparative analysis of inefficiency between public and private day-care centres. Estimates of multi-output production technology and technical inefficiency are obtained in a stochastic frontier model by using cross-section micro-data from a region of northern Italy over the period 2007/8. We find that production exhibits increasing returns to scale and that separability between inputs and outputs is rejected. The average estimate of technical inefficiency is about 10% and public centres are more inefficient than private centres by 4.1% points.

Inefficiency in Childcare Production: Evidence from Italian Microdata / Brighi, Luigi; Silvestri, Paolo. - In: ITALIAN ECONOMIC JOURNAL. - ISSN 2199-322X. - 5:1(2019), pp. 103-133. [10.1007/s40797-019-00087-y]

Inefficiency in Childcare Production: Evidence from Italian Microdata

Brighi, Luigi
;
Silvestri, Paolo
2019

Abstract

The paper provides an empirical analysis of production technology in the childcare sector and offers a comparative analysis of inefficiency between public and private day-care centres. Estimates of multi-output production technology and technical inefficiency are obtained in a stochastic frontier model by using cross-section micro-data from a region of northern Italy over the period 2007/8. We find that production exhibits increasing returns to scale and that separability between inputs and outputs is rejected. The average estimate of technical inefficiency is about 10% and public centres are more inefficient than private centres by 4.1% points.
2019
5
1
103
133
Inefficiency in Childcare Production: Evidence from Italian Microdata / Brighi, Luigi; Silvestri, Paolo. - In: ITALIAN ECONOMIC JOURNAL. - ISSN 2199-322X. - 5:1(2019), pp. 103-133. [10.1007/s40797-019-00087-y]
Brighi, Luigi; Silvestri, Paolo
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11380/1176848
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