Analysis of State-Level Prices of Child Care Centers and Family Child Care Homes

Didem Pekkurnaz

Iktisat Isletme ve Finans, 2015, vol. 30, issue 348, 35-68

Abstract: The high cost of child care makes child care services unaffordable for many low-income families. This research examines the determinants of state-level prices of child care centers and family child care homes for infants and 4-year olds between 2006 and 2012. Similar to the previous findings, the results show that median income and wage payments to child care workers are positively associated with child care prices. Quality scores for both centers and family child care homes are also shown to be significant predictors of child care costs. The quality score indicates to what extent a child care service satisfies the required quality standards. Hence, policy makers should not only facilitate access to affordable and high-quality child care for families but also ensure that child care providers can satisfy quality standards with low costs.

Keywords: Child Care Price and Quality; Panel Data Model (search for similar items in EconPapers)
JEL-codes: C23 J13 (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:iif:iifjrn:v:30:y:2015:i:348:p:35-68

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