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Graphic from Florida's State Employee Child Care Services Program

Measuring the Economic Impact of the Informal Child Care Sector Amy Lake and Eun-Young Choi University of Missouri-Columbia Community Policy Analysis Center June 28, 2006. Graphic from Florida's State Employee Child Care Services Program. What do we mean by the informal child care sector?.

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Graphic from Florida's State Employee Child Care Services Program

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  1. Measuring the Economic Impact of the Informal Child Care Sector Amy Lake and Eun-Young Choi University of Missouri-Columbia Community Policy Analysis Center June 28, 2006 Graphic from Florida's State Employee Child Care Services Program

  2. What do we mean by the informal child care sector? • Definition of informal child care: • exempt from licensing regulations • In-home care, Relative care, friends & neighbors child care

  3. Why are we interested in the informal child care sector? • 48% of working mothers who have children under 5 years old use informal daycare • 52% use licensed / regulated or family facilities (http://www.nccanet.org/NCCA%20Impact%20Study.pdf)

  4. Some assumptions about the child care industry based on national studies • The cost of child care in urban areas tends to be higher than in rural areas • The proportion of household income spent on child care tends to be higher in rural areas than urban • Center-based child care (formal) tends to be more expensive than family-based • Child care services for infants (under 18 months) tends to be higher than for older children

  5. 222 222 111 111 111 222 222 111 111 222 222 333 222 222 222 333 222 222 111 333 222 111 222 222 555 111 222 111 111 111 111 333 222 333 444 222 222 333 444 444 333 111 111 222 111 111 333 444 222 222 222 111 222 222 222 222 111 222 111 111 333 444 222 111 333 444 222 555 333 222 111 222 222 111 222 333 222 444 111 111 333 111 111 333 222 333 111 111 222 444 333 333 222 Kansas County Population Density 333 333 333 444 444 555 444 555 555 444 222 333 Frontier, Less than 6 persons per square mile (31 Counties) Rural, 6 to less than 20 persons per square mile (38 Counties) Densely settled rural, 20 to less than 40 persons per square mile (19 Counties) Semi-Urban, 40 to less than 150 persons per square mile (12 Counties) Urban, 150 + persons per square mile (5 Counties) Source: The Kansas Department of Health and Environment

  6. Basic approach • Estimate number of children < 6 in the formal childcare sector • Estimate the number of children <6 in households with all parent (s) working • Estimate the average cost of formal childcare by county

  7. Basic approach “Market value” of informal childcare = (Y - Z) x (Ave. cost of childcare) where Y = number of children <6 in households with all parent (s) working Z = Number of children < 6 in the formal childcare sector

  8. 4251 2600 3767 3760 4643 3934 3682 4534 3965 3070 3734 3422 3061 5447 4521 4125 5172 4069 2444 4001 4170 4160 3050 4087 4125 5160 6011 5241 5411 4035 4152 5691 3900 4452 3739 1381 3218 5064 3981 5894 2558 4755 7959 5109 4033 4949 4443 3944 4269 4131 5168 5177 1477 2785 3115 2543 4439 4254 3674 4653 2137 4437 4411 3903 1165 4147 5342 5432 4059 1245 2725 4461 2894 3299 4272 3039 3196 4605 4411 3634 1860 5953 2779 2582 3489 4038 3206 2111 4126 3857 3714 4383 4438 4599 3569 4074 4116 4259 3429 3786 4310 4267 4077 2629 3458 Estimated Annual Cost of Formal Child Care Per Child for Kansas Counties $1,245 ~ $3,500 Annual Ave. KS Cost: $ 3947 Rural Average: $ 3757 Urban Average: $ 4936 $3,501~ $4,070 $4,071 ~ $4,460 $4,461 ~ $7,959 Source: Kansas Social and Rehabilitation Services

  9. 13.9% 8.1% 13.2% 12.3% 15% 11.2% 12.5% 14.1% 11.6% 9.4% 11.7% 11.3% 10% 15.9% 14.2% 12.8% 11% 7.8% 13.7% 12.4% 11.2% 10.4% 12.7% 9.1% 13.4% 12.1% 11.3% 18.8% 10.6% 13.4% 15.5% 13.9% 12.1% 13.9% 12.6% 4.2% 9.6% 15.7% 9.5% 15.7% 8.7% 12.7% 13% 14.2% 11.3% 15.4% 11.7% 12.2% 13.3% 13.2% 11.1% 13.3% 4.4% 7.7% 7.7% 7.3% 13.5% 10.3% 13% 10.6% 6.5% 12.6% 11.7% 11.7% 3.2% 13.9% 11.5% 13.3% 13% 12.6% 3.9% 6.8% 11.4% 10.5% 14.2% 10% 10.2% 10.1% 9.1% 5.2% 14% 11.7% 6.9% 6.7% 10.7% 11.9% 10% 7.7% 10.4% 12.2% 12.5% 11% 11.5% 12% 13.1% 12.7% 11.2% 10.2% 11.7% 14.3% 13.9% 11.1% 11.1% 9.2% 11.2% Formal Child Care Costs as a Percentage of Median Household Income, Kansas Counties 3.2% - 10.2% Kansas Average: 11.4% Rural Average: 11.3% Urban Average: 11.8% 10.3% - 11.7% 11.9% - 13.3% 13.4% - 18.8% Source: Kansas Social and Rehabilitation Services

  10. Numbers of Children in Informal Care (Estimated) for Kansas Counties (Children under 6 years old) 38 233 56 -1* 2 133 130 6 58 140 -877 279 -200 419 27 239 -18 482 -15 41 116 21 37 147 -19 138 -4730 1711 163 3305 -2 1450 533 146 10 13 64 185 105 80 -393 6279 -16 213 35 39 329 437 110 16 49 -884 -25 38 -25 152 729 869 1 314 -17 214 245 76 81 -16 -39 42 954 56 149 254 21 -91 219 83 -41 576 178 10553 1144 104 32 61 105 174 111 12 123 -92 88 387 50 83 352 64 119 170 470 4 9 409 -65 473 12 • KS Children informal care: 38,370 (28%**) • Rural Children informal care : 12,808 (25%**) • Urban Children informal care : 25,561 (30%**) • ** % of children < 6 with working parents in informal child care arrangements) -4730 ~ 12* invalid estimates 13 ~ 85 86 ~ 250 251 ~ 10553 Source: Kansas Social and Rehabilitation Services & Census 2000

  11. $0.00* $0.14 $0.22 $0.14 $0.62 $0.51 $0.02 $0.00 $1.10 $0.00 $0.87 $0.01 $0.43 $2.28 $0.12 $1.24 $0.47 $0.09 $0.00 $0.00 $9.26 $2.01 $0.17 $0.06 $0.60 $0.57 $0.00 $0.00 $0.66 $0.00 $17.32 $8.25 $0.05 $2.37 $0.39 $0.01 $0.21 $0.94 $0.58 $0.00 $0.20 $1.01 $49.97 $0.00 $0.14 $0.19 $1.46 $0.00 $0.65 $0.07 $2.26 $0.57 $0.07 $0.11 $0.00 $0.00 $3.24 $3.70 $1.15 $0.00 $0.00 $0.36 $0.94 $0.96 $0.09 $0.00 $5.10 $0.00 $0.17 $1.13 $0.07 $0.41 $0.06 $0.00 $0.94 $0.25 $0.00 $2.65 $0.65 $0.19 $62.82 $5.05 $0.17 $0.27 $0.00 $0.05 $0.40 $0.19 $0.13 $0.43 $0.65 $1.54 $0.28 $0.78 $0.03 $1.59 $0.35 $1.62 $0.45 $2.02 $0.01 $0.00 $0.20 $0.03 $1.41 Estimated Cost of Informal Child Care for Kansas Counties (In millions of dollars) Kansas Total: $ 210 million Rural Total : $ 52 million Urban Total: $ 158 million $0* estimate not available $0.01-0.25 $0.26-$1.00 $1.01 -$62.82 Source: Kansas Social and Rehabilitation Services.

  12. Conclusions and questions • Informal childcare is important in terms of providing alternatives for parents and guardians and also as an economic engine • How can this information inform policy at the state, national and local levels? • How can we refine the estimates that we’ve made about the informal child care sector?

  13. Contact information Amy Lake, Extension Associate Phone: 573-882-5412 Email: lake@missouri.edu Eun-Young Choi, Graduate Research Assistant Phone: 573-882-5766 Email: ecd26@mizzou.edu Community Policy Analysis Center – UMC 215 Middlebush Hall Columbia MO 65211

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