Quotation Pennerstorfer, Astrid, Pennerstorfer, Dieter. 2019. How small are small markets? Local market size for child care services. Regional Science and Urban Economics. 77 (7), 340-355.




In this article, we propose an innovative way of delineating local markets based on easily accessible data. We apply this concept to the day care industry and investigate providers' location choices relative to local market characteristics to evaluate the widespread presumption that local markets for child care services are geographically very small. Using a panel of all day care centers for the metropolitan region of Vienna, Austria, for nearly a decade, as well as geographically extremely disaggregated data on the spatial distribution of children under the age of six at the 250 m × 250 m grid cell level, we find that the location of children and day care centers are strongly related, but this relationship diminishes as soon as the distance between a child's place of residence and the day care center's location increases. We conclude that local markets for day care services in metropolitan regions are indeed very small (about 500 m or 550 yards).


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Regional Science and Urban Economics
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, VW-C, WH-B
Language English
Title How small are small markets? Local market size for child care services
Volume 77
Number 7
Year 2019
Page from 340
Page to 355
Reviewed? Y
DOI https://doi.org/10.1016/j.regsciurbeco.2019.06.006
Open Access Y
Open Access Link http://www.economics.uni-linz.ac.at/papers/2018/wp1814.pdf
JEL R30; R53; L10; H44


Pennerstorfer, Astrid (Details)
Pennerstorfer, Dieter (JKU Linz, Austria)
Institute for Social Policy IN (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
5329 Economics of location (Details)
5363 Non-profit-sector research (NPO, NPI) (Details)
5611 Urban and regional analysis (Details)
5911 Social policy (Details)
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