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In an effort to enhance the quality of early childhood education (ECE) at scale, nearly all U.S. states have recently adopted Quality Rating and Improvement Systems (QRIS). These accountability systems give providers and parents information on program quality and create both reputational and financial incentives for program improvement. However, we know little about whether these accountability reforms operate as theorized. This study provides the first empirical evidence on this question using data from North Carolina, a state with a mature QRIS. Using a regression discontinuity design, we examine how quasi-random assignment to a lower quality rating influenced subsequent outcomes of ECE programs. We find that programs responded to a lower quality rating with comparative performance gains, including improvement on a multi-faceted measure of classroom quality. Programs quasi-randomly assigned to a lower star rating also experienced enrollment declines, which is consistent with the hypothesis that parents responded to information about program quality by selectively enrolling away from programs with lower ratings. These effects were concentrated among programs that faced higher levels of competition from nearby providers.

Zonder onderwerpscode: economie

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The success of any governmental subsidy depends on whether it increases or crowds out existing consumption. Yet to date there has been little empirical evidence, particularly in the education sector, on whether government intervention crowds out private provision. Universal preschool policies introduced in Georgia and Oklahoma offer an opportunity to investigate the impact of government provision and government funding on provision of childcare. Using synthetic control group difference-in-difference and interrupted time series estimation frameworks, we examine the effects of universal preschool on childcare providers. In both states there is an increase in the amount of formal childcare. While there is no crowd-out in Oklahoma, some of the government subsidized preschool in Georgia replaces childcare that would have occurred otherwise. We find the largest positive effects on provision in the most rural areas, a finding that may help direct policymaking efforts aimed at expanding childcare.

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In an effort to enhance the quality of early childhood education (ECE) at scale, nearly all U.S. states have recently adopted Quality Rating and Improvement Systems (QRIS). These accountability systems give providers and parents information on program quality and create both reputational and financial incentives for program improvement. However, we know little about whether these accountability reforms operate as theorized. This study provides the first empirical evidence on this question using data from North Carolina, a state with a mature QRIS. Using a regression discontinuity design, we examine how quasi-random assignment to a lower quality rating influenced subsequent outcomes of ECE programs. We find that programs responded to a lower quality rating with comparative performance gains, including improvement on a multi-faceted measure of classroom quality. Programs quasi-randomly assigned to a lower star rating also experienced enrollment declines, which is consistent with the hypothesis that parents responded to information about program quality by selectively enrolling away from programs with lower ratings. These effects were concentrated among programs that faced higher levels of competition from nearby providers.