Abstract
AbstractThis paper empirically investigates Korean households' choice of childcare mode using the Korean Childcare Users Survey (2012). A multivariate logit model with partial observability (hereafter, PO‐logit model) is employed to address the issue of Korean households' demand for public childcare facilities exceeding capacity limits. Our estimation result rejects the hypothesis of no queueing at conventional significance levels to advocate use of the PO‐logit model in explaining Korean households' childcare choices. We decompose choice probabilities of public childcare facilities to estimate the size of queuing. Our results imply that 31.8% of parents preferring public childcare facility are forced to choose other childcare modes due to capacity limit.
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