Economic Impacts of Child Care

From an economic perspective, the child care industry benefits the statewide and local economies by allowing parents to take full advantage of employment opportunities. Most notably, the spending, employment, and other economic activities associated with businesses in the child care industry also generate what is known as a “ripple effect” in the economy due to the linkages that exist between business operations, suppliers of goods and services (indirect effect), and employee spending (induced effect).
 
In order to develop a greater understanding of the child care industry’s economic effects throughout the the statewide and local economies, a group of child care coordinating entities in Central and Northern California engaged the Center for Strategic Economic Research (CSER) to conduct a high-level gross economic impact analysis.