Skip to main content
    • Aa
    • Aa

The Impact of Market Forces on Child Care Provision: Insights from the 2005 Child Care Act in the Netherlands


This article examines the impact of the introduction of market forces on child care provision in the Netherlands. In January 2005, the Dutch government introduced the Child Care Act, replacing the former financing system, which had elements of both supply- and demand-financing, with a fully demand-financing system. As a result, the provision of child care is now driven by market forces. Using data on the geographical location of child care facilities, this article compares the factors affecting the provision of child care in the Netherlands before and after the introduction of the Child Care Act. The results suggest that after the regulatory reform the provision of child care has shifted towards wealthy urbanised areas, characterised by high demand and high purchasing power. This shift has largely benefited for-profit providers particularly active in these markets. In parallel, the results indicate an important drop in child care provision by non-profit organisations, most pronounced in less wealthy rural areas. These findings suggest that the introduction of demand-financing may have implications for the accessibility of child care.

Corresponding author
Linked references
Hide All

This list contains references from the content that can be linked to their source. For a full set of references and notes please see the PDF or HTML where available.

D. M. Blau and H. M. Mocan (2002), ‘The supply of quality in child care centers’, Review of Economics and Statistics, 84: 3, 483–96.

D. Blau and P. Robins (1988), ‘Child care costs and family labor supply’, Review of Economics and Statistics, 70, 374–81.

M. A. Gonzalez and T. S. Vidal (2006), ‘Where do I leave my baby? Use and development of early childcare in Spain’, Recherches et Prévisions, no. 83, Paris: CNAF.

S. S. Gustafsson and F. Stafford (1992), ‘Child care subsidies and labor supply in Sweden’, Journal of Human Resources, 27: 1, 204–30.

H. Hansmann (1980), ‘The role of nonprofit enterprise’, Yale Law Journal, 89, 835901.

D. Lakdawalla and T. Philipson (2006), ‘The nonprofit sector and industry performance’, Journal of Public Economics, 90: 89, 1681–98.

E. Maskin and J. Tirole (2004), ‘The politician and the judge: accountability in government’, American Economic Review, 94: 4, 1034–54.

J. R. Morris and S. W. Helburn (2000), ‘Child care center quality differences: the role of profit status, client preferences, and trust’, Nonprofit an Voluntary Sector Quarterly, 29: 3, 377–99.

S. Rose-Ackerman (1986), ‘Altruistic nonprofit firms in competitive markets: the case of day-care centres in the United States’, Journal of Consumer Policy, 9, 291310.

D. C. Ribar (1992), ‘Child care and the labor supply of married women: reduced form evidence’, Journal of Human Resources, 27: 1, 134–65.

L. Van Dijk , A. H. E. B. Koot-du Buy and J. J. Siegers (1993), ‘Day-care supply by Dutch municipalities’, European Journal of Population, 9: 4, 315–30.

J. Walker (1992), ‘New evidence on the supply of child care’, The Journal of Human Resources, 27: 1, 4069.

Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Journal of Social Policy
  • ISSN: 0047-2794
  • EISSN: 1469-7823
  • URL: /core/journals/journal-of-social-policy
Please enter your name
Please enter a valid email address
Who would you like to send this to? *


Altmetric attention score

Full text views

Total number of HTML views: 3
Total number of PDF views: 41 *
Loading metrics...

Abstract views

Total abstract views: 158 *
Loading metrics...

* Views captured on Cambridge Core between September 2016 - 20th September 2017. This data will be updated every 24 hours.