title: Child center closures: Does nonprofit status provide a comparative advantage?
abstract: Reliable access to dependable, high quality childcare services is a vital concern for large numbers of American families. The childcare industry consists of private nonprofit, private for-profit, and governmental providers that differ along many dimensions, including quality, clientele served, and organizational stability. Nonprofit providers are theorized to provide higher quality services given comparative tax advantages, higher levels of consumer trust, and management by mission driven entrepreneurs. This study examines the influence of ownership structure, defined as nonprofit, for-profit sole proprietors, for-profit companies, and governmental centers, on organizational instability, defined as childcare center closures. Using a cross sectional data set of 15724 childcare licenses in California for 2007, we model the predicted closures of childcare centers as a function of ownership structure as well as center age and capacity. Findings indicate that for small centers (capacity of 30 or less) nonprofits are more likely to close, but for larger centers (capacity 30+) nonprofits are less likely to close. This suggests that the comparative advantages available for nonprofit organizations may be better utilized by larger centers than by small centers. We consider the implications of our findings for parents, practitioners, and social policy.
authors.affiliation: Columbia University School of Social Work, 1255 Amsterdam Avenue, New York, NY 10027, USA.
authors.forename: Marcus
authors.initials: M
authors.lastname: Lam
authors.forename: Sacha
authors.initials: S
authors.lastname: Klein
authors.forename: Bridget
authors.initials: B
authors.lastname: Freisthler
authors.forename: Robert E
authors.initials: RE
authors.lastname: Weiss
keywords: Childcare; Closures; Multilevel model; Nonprofit; Ownership structure
references.citation: Future Child. 1996 Summer-Fall;6(2):62-82
references.pmid: 8972128