Excerpts
Introduction
The cost of child care is a major contributor to the affordability crisis in New York City, putting significant strain on working families with young children. While some of these families are eligible for subsidized care, the system is difficult to navigate and leaves tens of thousands of low-income families without subsidized care, and thousands of middle-income families ineligible for vouchers yet still struggling to make ends meet. New York City led the nation in its introduction of universal Pre-K, which provides high-quality early childhood education and predictability for a new generation of New Yorkers planning their families in the face of rising costs. But major gaps remain.
This month’s spotlight examines the economics of child care in NYC. The main results are:
1. The economics of child care constrain New York City’s economic growth.
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2. Existing publicly funded programs do not meet families’ needs.
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3. The provision of free, universal child care would provide substantial benefits.
Given the substantial economic benefit, it is likely that more families would choose to remain in New York City if provided with free, high-quality child care, boosting population growth. Furthermore, many studies have identified the cognitive and social gains in children that can result from access to high-quality child care. These benefits are more difficult to quantify but they are key for the growth and well-being of the city’s population and economy, and therefore for the city’s long-term economic vitality.
This spotlight is organized in three sections covering: (a) the economics of child care in NYC, (b) the supply of public and subsidized child care, and (c) the economic benefits from the universal provision of child care.