Unequal access to childcare in cities: Is equal public funding sufficient?

Abstract

This article examines inequalities in the spatial accessibility of childcare between high- and low-status neighbourhoods in the city of Vienna and asks (i) whether specific public and non-profit provider types contribute to these inequalities and (ii) which factors may cause these inequalities in a mainly tax-funded childcare system. For our analysis, we combine data on the location and characteristics of childcare providers with spatially granular information on demand and neighbourhood characteristics. The results show that two provider types – church-related and independent non-profit providers – are mainly responsible for the higher accessibility of childcare in neighbourhoods with higher socio-economic status. Specifically independent providers charge significantly higher prices and offer more special services in these high-status areas. Public funding of a large part of the production costs, therefore, seems insufficient to ensure equal access in all neighbourhoods. These findings suggest that the exclusive comparison between public, private non-profit and private for-profit providers often found in the literature may be too narrow.