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Economic Impact of the Informal Childcare Sector in Kansas

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  • Choi, Eun-Young
  • Johnson, Thomas G.

Abstract

The informal childcare sector provides a significant proportion of childcare in the U.S. However, because informal sectors are not captured in our national income accounting sys-tem, the value to our economy is largely unknown. This study examines the size of the infor-mal childcare sector in the state of Kansas. Using IMPLAN data we also calculate implicit multipliers for the sector in order to estimate the full economic effects of informal childcare on the economy of Kansas and its regions. We find that the informal childcare sector creates large economic effects compared to the formal childcare sector. More specifically, the study estimates that informal childcare created about 128,494 direct jobs within the sector, another 6,842 jobs in other sectors, and $971.5 million in total value added in Kansas in 2005. We found that families in non-metro areas are more likely to use informal childcare than those in metro areas. As a result, even though the non-metro multipliers are smaller than those of met-ro areas, the informal childcare sector generates larger economic effects in non-metro areas than metro areas in general.

Suggested Citation

  • Choi, Eun-Young & Johnson, Thomas G., 2014. "Economic Impact of the Informal Childcare Sector in Kansas," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 44(1).
    • Handle: RePEc:ags:jrapmc:243961
    DOI: 10.22004/ag.econ.243961
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    1. Boylan, Robert & Cebula, Richard & Foley, Maggie & Izard, Douglass, 2014. "Implication of Recent Federal Personal Income Tax Increases for Income Tax Evasion, Tax Revenues, and Budget Deficits," MPRA Paper 68405, University Library of Munich, Germany.
    2. Tubadji, Annie & Nijkamp, Peter, 2016. "Impact of Intangible Cultural Capital on Regional Economic Development: A Study on Culture-Based Development in Greece," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 46(1).
    3. Gabe, Todd & McConnon, James C., 2018. "Popping the Question: The In uence of Survey Design on Estimated Visitor Spending in a Region," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 48(4), August.
    4. James, Ryan D. & Campbell Jr., Harrison S., 2016. "Exploring the Role of Unearned and Non-Wage Income on Regional Income Convergence," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 46(2), December.

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