IDEAS home Printed from https://ideas.repec.org/a/ags/jrapmc/132425.html
   My bibliography  Save this article

Regional Variation in Child Care Prices: A Cross-State Analysis

Author

Listed:
  • Davis, Elizabeth E.
  • Li, NaiChia

Abstract

A recent study reported that the average annual fees for full-time infant care in a child care center ranged from $3,803 in Alabama to $13,480 in Massachusetts. This study analyses this variation in state-level average child care center prices using a standard economic model of supply and demand. We found that a large proportion of the variation in average child care prices can be explained by a small set of variables, including median family income, wages paid to child care workers, and the number of young children in the state. Although the gov-ernment plays an important role in the child care market, the wide variation in average fees across states mostly reflects what parents can afford to pay. Given the importance of quality child care to current workforce needs and future human capital development, strategies to in-crease affordability such as child care subsidies and tax credits should be considered along with direct investments in quality improvements.

Suggested Citation

  • Davis, Elizabeth E. & Li, NaiChia, 2009. "Regional Variation in Child Care Prices: A Cross-State Analysis," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 39(1).
  • Handle: RePEc:ags:jrapmc:132425
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/132425
    Download Restriction: no

    References listed on IDEAS

    as
    1. Rachel Connelly & Jean Kimmel, 2003. "The Effect of Child Care Costs on the Employment and Welfare Recipiency of Single Mothers," Southern Economic Journal, Southern Economic Association, vol. 69(3), pages 498-519, January.
    2. Edwards, John H. Y. & Fuller, Bruce & Liang, Xiaoyan, 1996. "The mixed preschool market: Explaining local variation in family demand and organized supply," Economics of Education Review, Elsevier, vol. 15(2), pages 149-161, April.
    3. David M. Blau & Alison P. Hagy, 1998. "The Demand for Quality in Child Care," Journal of Political Economy, University of Chicago Press, vol. 106(1), pages 104-146, February.
    Full references (including those not matched with items on IDEAS)

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jrapmc:132425. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/mcrsaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.