Affordable Childcare for Employee Retention: Entry 1

The Problem: We hear story after story of 2+ year wait lists, outrageous monthly prices for your slot, and childcare providers struggling to find and keep quality workers (thus, the higher prices to attract/retain employees). It's a mess! We are operating based on these basic pricinples: 

• Economic Stability: Access to affordable childcare is crucial for low-to-very-low income earners as it directly impacts their ability to maintain employment and achieve economic stability. Without affordable childcare, parents, particularly single mothers, may be forced to reduce working hours or quit their jobs, leading to increased financial instability.
• Workforce Participation: Affordable childcare significantly increases workforce participation among low-income parents. Studies show that subsidized childcare options lead to higher employment rates, especially among mothers, allowing families to break the cycle of poverty.
• Child Development: High-quality, affordable childcare has a positive impact on early childhood development, which is particularly beneficial for children from low-income families. These children often experience improved cognitive, social, and emotional development, which can have long-term benefits in education and future employment.
• Reduction in Poverty: Access to affordable childcare is linked to a reduction in poverty rates among families with young children. When parents can work full-time, they are more likely to move out of poverty, and the benefits extend to their children’s well-being and future prospects.
• Mental Health: The availability of affordable childcare reduces stress and anxiety among low-income parents. The financial burden of childcare can be overwhelming, and affordable options help alleviate this stress, leading to better mental health outcomes for parents.
• Gender Equality: Affordable childcare promotes gender equality in the workforce by enabling more women, particularly those from low-income households, to seek and retain employment. This contributes to closing the gender wage gap and empowering women economically.
• Long-Term Economic Benefits: Investing in affordable childcare yields long-term economic benefits, including increased tax revenues, reduced dependency on public assistance programs, and a more educated and productive future workforce.
• Barriers to Access: Despite the clear benefits, low-income families often face barriers in accessing affordable childcare, such as limited availability of subsidized programs, long waiting lists, and the geographic mismatch between childcare centers and the places where low-income families live or work.
  

These findings underscore the critical need for policies and programs that expand access to affordable childcare for low-to-very-low income earners, as this support is essential for the economic and social well-being of both parents and their children.

Although everyone knows intuitively that quality and affordable childcare is a major problem, what does the data show? If you want to research this topic more, here are some good data sources: 

Academic Journals: Studies published in journals such as Child Development, Journal of Marriage and Family, and Early Childhood Research Quarterly often provide peer-reviewed data on the impact of affordable childcare on low-income families. Example articles:

• Morrissey, T. W. (2017). "Child care and parent labor force participation: A review of the research literature." Review of Economics of the Household, 15(1), 1-24.
• Herbst, C. M., & Tekin, E. (2016). "The impact of child care subsidies on child well-being: Evidence from geographic variation in the distance to social service agencies." Journal of Policy Analysis and Management, 35(1), 94-116.

Government Reports and Data: Agencies like the U.S. Department of Health and Human Services, Administration for Children and Families, and U.S. Census Bureau provide extensive data on childcare costs, access, and the impact on low-income families. Example reports:

• "Child Care Subsidy Literature Review" by the Office of Planning, Research, and Evaluation (OPRE), U.S. Department of Health and Human Services.
• "Who’s Minding the Kids? Child Care Arrangements: 2019" by the U.S. Census Bureau.

Non-Profit Organizations and Research Institutes: Organizations such as the National Women’s Law Center, Center for American Progress, and Urban Institute conduct and publish research on the effects of childcare affordability on low-income families. Example reports:

• "The Child Care Crisis Is Keeping Women Out of the Workforce" by the Center for American Progress.
• "Low-Income Families and the Cost of Child Care" by the Urban Institute.

Longitudinal and Survey Data: Data from long-term studies like the National Longitudinal Survey of Youth (NLSY) and the Early Childhood Longitudinal Study (ECLS) are often used to analyze the impacts of childcare on family outcomes. Example studies:

• "The Effects of Child Care Costs on the Labor Force Participation and Welfare Use of Low-Income Mothers" published in Labour Economics.

These sources were used in our research of the growing problem of quality childcare affordability. We will provide updates as our initiative progresses. The good, the bad, the ugly...we are trying to figure it out with some key local partners. Hopefully, your community can learn from our mistakes and successes along the way as we all try to overcome this barrier together.