The Labor Force Implications of Expanding the Child Care Industry

This paper examines the labor force implications of increased social investment in the child care industry. We have two main conclusions to report. First, expanding the child care industry will remove a major barrier to employment for a sizable number of women. This includes women in middle and upper income families who desire to work for personal fulfillment and to improve their families' lifestyles. But even more so, it includes women in low-income and single-parent families who need to work to maintain a minimal and dignified standard of living and who might otherwise remain dependent on welfare benefits for their own and their families' subsistence. Second, expanding the child care industry will help employers cope with a range of personnel problems they will increasingly face as the U.S. undergoes a major transition in the 1990' s from being a labor surplus economy to being a labor shortage economy.