The kindergarten attendance allowance in Hungary

Kertesi, Gábor and Kézdi, Gábor (2014) The kindergarten attendance allowance in Hungary. Acta Oeconomica, 64 (1). pp. 27-49. ISSN 0001-6373

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Abstract

This paper evaluates the kindergarten attendance allowance program in Hungary, a conditional cash transfer (CCT) program introduced in 2009 that aimed to increase kindergarten enrolment of disadvantaged children aged 3 and 4. The administration of the program was decentralised, and we make use of the substantial regional variation in program take-up across municipalities to estimate the program’s effect on enrolment rates. We show modest, but non-negligible effects, despite problems related to the manner of the program’s implementation. We also show that the effects were significantly stronger in areas characterised by an excess supply of kindergarten slots. The results testify to the potential of CCT programs to create demand for child-care services among disadvantaged families; however, the results also highlight the importance of creating an adequate supply of kindergarten facilities where needed.

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