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Impact analysis of increasing day care capacity for children aged 1-3

Motivated by the existing empirical evidence that day care services increase female labour supply (while  cash support tends to reduce it), this project assessed the potential impact of increasing the provision of day care  services for children aged 1-3 in Hungary.

The project aimed to assess all potential costs and benefits, and identified any side effects that should be considered in the allocation of new capacity.

In particular, it identified the shortages and the geographical distribution of potential gains (mostly related to labour market conditions and the composition of the female labour force) and variations in costs depending on settlement size and location. It also outlined options for securing the necessary funding and motivating  municipalities to increase day care provisions and also deliver high quality service.

The full report on the project was published in Hungarian, but a summary is available in English as well. Some of the proposals were also presented at a seminar of the European Centre in Vienna, on 18 September.

Project details
ClientPrime Minister's Office
Project leader Ágota Scharle
Duration23/12/2008 - 15/06/2009