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Altruistic nonprofit firms in competitive markets: The case of day-care centers in the United States

Gemeinnützige Unternehmungen auf wettbewerblich organisierten Märkten: Das Beispiel von Kindertagesstätten in den USA

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Abstract

Day care for young children is provided in the United States by a wide range of individuals and organizations, both for-profit and nonprofit, public and private. Some children receive direct public subsidies; others do not, but any type of center may, if it wishes, become eligible to accept subsidized children. How can such a heterogeneous industry structure persist? How well has this mixture of organizations and financing arrangements been in responding to the current growth in the labor force participation of mothers? Using cross-section state-by-state data, this paper provides evidence demonstrating that the industry is very responsive to demand conditions (e.g., the level of female labor force participation, the number of children in single-parent families), but that subsidy money is distributed across the nation in a way that bears little relation to the relative needs of the population. Furthermore, interstate differences in regulatory stringency affect relative costs and appear to limit supply where regulations are most restrictive. I also argue that the current mixed industry structure is stable. Many nonprofits provide high-quality services at low prices because they are managed by altruists and receive private donations. Such firms do not, however, take over the market because there are not enough altruistic managers or donors to go around. Instead they ration their supply and those who cannot be served turn to other parts of the market. The marginal producers, however, appear to be for-profits which respond to profitable opportunities by entry and expansion.

Zusammenfassung

Tagespflege für Kinder wird in den USA von vielen privaten und öffentlichen Personen und Organisationen angeboten, sowohl gewinnorientiert wie auch gemeinnützig. Einige Kinder erhalten direkte staatliche Unterstützung, andere nicht. Aber jede Kindertagesstätte kann auf Wunsch die Berechtigung erhalten, staatlich unterstützte Kinder aufzunehmen. Wie kann eine solche heterogene Angebotsstruktur bestehen? Wie flexibel kann diese Mischung von Organisationsformen und Finanzierungsmöglichkeiten auf den derzeitigen Anstieg der Berufstätigkeit von Müttern reagieren? Querschnittsdaten über die Bundesstaaten der USA hinweg zeigen, daß sich das Angebot sehr flexibel an die Nachfrage anpaßt, daß aber die Verteilung der staatlichen Unterstützungsgelder innerhalb der Nation nur wenig der Struktur der relativen Bedürfnisse der Bevölkerung entspricht. Dies ist ein Beispiel dafür, daß der Föderalismus zu einer offenbar willkürlichen Allokation der nationalen Sozialleistungs-Mittel führt. Hinzu kommt, daß die Bundesstaaten unterschiedlich strenge Durchführungsvorschriften haben, was die relativen Kosten beeinflußt und das Angebot dort am stärksten einschränkt, wo die Vorschriften am restriktivsten sind.

Insgesamt behauptet der Beitrag jedoch, daß nicht nur der Markt flexibel auf die Nachfrage reagiert, sondern auch, daß die derzeitige gemischte Struktur des Angebotes stabil ist. Viele private gemeinnützige Institutionen bieten hervorragende Leistungen zu niedrigen Preisen an, weil die Verantwortlichen unentgeltlich arbeiten und von privaten Spendern unterstützt werden. Dennoch können solche Anbieter den Markt nicht ganz übernehmen, da es weder genügend Mitarbeiter gibt, die bereit sind, unentgeltlich zu arbeiten, noch genügend Spender. Wohl aber teilen sie ihr Angebot zu, so daß jene Nachfrage, die nicht befriedigt wird, auf andere Anbieter ausweicht, zumal die öffentliche Unterstützung die Unterschiede zwischen den Typen von Kindertagesstätten stark vermindert.

Der Nachweis einer ausreichenden Zahl von Plätzen in Kindertagesstätten bedeutet nicht, daß die politische Verantwortlichen das Angebot in diesem Bereich vernachlässigen könnten und nur dafür zu sorgen hätten, daß angemessene und gerechte Subventionen zur Verfügung stehen. Das Qualitätsniveau bei solchen Tagesstätten ist sehr unterschiedlich und es kommt sowohl bei gemeinnützigen wie auch bei gewinnorientierten Institutionen vor, daß die Leistungen unter dem Standard liegen. Andereseits werden striktere Qualitätsvorschriften die Preise anheben, das Angebot verringern und somit mehr Kinder in den unkontrollierbaren informellen Sektor abdrängen. Strikte Regulierungen könnten die wirksamkeit der staatlichen Absichten beeinträchtigen und beispielsweise die Klassen-und Rassentrennung fördern.

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Authors

Additional information

Susan Rose-Ackerman is Professor of Law and Political Economy and Director of the Center for Law and Economic Studies, Columbia University Law School, 435 West 116th Street, New York, NY 10027, U.S.A. This paper was partially supported by the Yale Program on Non-Profit Organizations (PONPO). A more complete version is available as a PONPO working paper. Neil Briskman did the computer work and Arnold Sheetz helped locate sources of data and information on the day care industry. The author is grateful to both of them for their excellent assistance, and to Dov Dublin for generously sharing his computer data tape from the day care supply study performed by Abt Associates. Avner Ben-Ner, Paul DiMaggio, and Richard Murnane made helpful comments on earlier drafts.

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Rose-Ackerman, S. Altruistic nonprofit firms in competitive markets: The case of day-care centers in the United States. J Consum Policy 9, 291–310 (1986). https://doi.org/10.1007/BF00380301

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