Affordable Childcare : A Needs Assessment of Low-income Mothers and Childcare Providers inUrban Bangladesh

Investments in childcare can generate immense economic and social benefits through increasedfemale labor force participation and improved child development outcomes. However, high quality childcareoptions in Bangladesh are limited and available options are unaffordable for the urban poor. This paper examines theneeds, preferences, and practices pertaining to childcare among parents and care providers for low-income householdsin urban Bangladesh. On the demand side, this paper finds that rapid urbanization along with a decrease inmultigenerational households are increasing the demand for childcare services. Perceptions of child safety and thepotential for child development are the two main factors driving the choice of care provider. However, knowledge ofchildcare best practices is limited among the urban poor, resulting in risky childcare practices at home. On thesupply side, there is a severe gap in care provision, limiting access for the urban poor. The lack of sustainablefinancing is a major challenge for affordable care provision in Bangladesh. The absence of a regulatory framework andminimum standards for childcare has led to significant variations in the quality of care.