Abstract:

Since the founding of the People’s Republic of China, the supply institutional change in Chinese urban preschool education has been a typical gradual change process, during which the stock change is driven by incremental change. The nature of the Urban Preschool Education is from “Danwei-supply welfare” to “market-supply commodity” and “muti-supply public service”. Based On an analysis of New Institutional Economic, it finds that the external incentive of institutional change is Economic System Change, the revenue maximization of government, Danwei and market is the fundamental force, and the government is the most important part which determine the direction of institutional change, and the government’s excessively dependence on the market supply is the path dependence of institutional change. It suggests the government should take responsibility of interest coordination, and the participation degree of parents and teachers should be promoted to ensure their profits. Meanwhile the governmental supervision and guide is indispensable on the base of muti-supply.

Key words: urban preschool education, supply institutional, institutional change, New Institutional Economic