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.File | Dimensione | Formato | |
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