This article examines the efficiency of subsidies for extra-family child care. It is shown that if the government is attempting to maximize the household Abstract utility function revealed by the individual family, deductibility of child care expenses will constitute the maximum efficient...

Nonprofit child care centers are frequently observed to produce child care which is, on average, of higher quality than care provided in commercial child care centers. In part, this nonprofit advantage is due to different input choices made by nonprofit centers-lower child-staff ratios,...