1. Graphic from Florida's State Employee Child Care Services Program Measuring the Economic Impact of the Informal Child Care Sector Amy Lake and Eun-Young Choi University of Missouri-Columbia Community Policy Analysis Center June 28, 2006

2. What do we mean by the informal child care sector? SubsidizedUnsubsidized Regulated Child Care Arrangements Centers Group Day Care Homes Licensed Day Care Homes Registered Family Day Care Homes Legally Exempt Child Care Arrangements Relative Care In-Home Care Friend & Neighbor Child Care Illegal Child Care Arrangements Illegal Providers Definition of informal child care:  exempt from licensing regulations  In-home care, Relative care, friends & neighbors child care

3. Why are we interested in the informal child care sector? 48% of working mothers who have children under 5 years old use informal daycare 52% use licensed / regulated or family facilities (http://www.nccanet.org/NCCA%20Impact%20Stu dy.pdf)

4. Some assumptions about the child care industry based on national studies The cost of child care in urban areas tends to be higher than in rural areas The proportion of household income spent on child care tends to be higher in rural areas than urban Center-based child care (formal) tends to be more expensive than family-based Child care services for infants (under 18 months) tends to be higher than for older children

5. 333 444 222 555 333 444 333 444 555 Kansas County Population Density Densely settled rural, 20 to less than 40 persons per square mile (19 Counties) Frontier, Less than 6 persons per square mile (31 Counties) Rural, 6 to less than 20 persons per square mile (38 Counties) Semi-Urban, 40 to less than 150 persons per square mile (12 Counties) Urban, 150 + persons per square mile (5 Counties) 333 Source: The Kansas Department of Health and Environment

6. Basic approach 1. Estimate number of children < 6 in the formal childcare sector 2. Estimate the number of children <6 in households with all parent (s) working 3. Estimate the average cost of formal childcare by county

7. Basic approach “Market value” of informal childcare = (Y - Z) x (Ave. cost of childcare) where Y = number of children <6 in households with all parent (s) working Z = Number of children < 6 in the formal childcare sector

8. Estimated Annual Cost of Formal Child Care Per Child for Kansas Counties 4605 5342 4461 4383 4116 4272 4411 4259 4069 2600 3944 4160 3900 3218 4251 5953 1245 4438 4074 3061 3674 1381 3934 5064 4643 3767 4534 3422 3682 2444 3739 4087 3050 4254 2558 4269 4001 4170 2725 4439 5109 3634 4147 4038 3981 2543 4059 4267 4077 2137 3115 4755 4437 3760 3965 4152 4035 4125 4131 1477 4653 4521 1860 3857 3786 2785 4443 4033 4599 4949 2111 4411 2779 4125 5172 3458 4310 3569 1165 2629 3196 3489 3734 3903 5177 3206 5168 5691 2582 3429 3714 5160 4126 5432 2894 3299 5894 5411 7959 6011 3039 5447 4452 3070 5241 $3,501~ $4,070 $1,245 ~ $3,500 $4,071 ~ $4,460 $4,461 ~ $7,959 Source: Kansas Social and Rehabilitation Services Annual Ave. KS Cost: $ 3947 Rural Average: $ 3757 Urban Average: $ 4936

9. Formal Child Care Costs as a Percentage of Median Household Income, Kansas Counties 11% 12% 10.1% 14% 8.1% 10% 9.6% 15% 13.9% 12.6% 3.9% 11.1% 4.2% 14.2% 7.8% 9.1% 13% 8.7% 11.7% 12.7% 12.2% 12.7% 12.1% 6.8% 9.1% 13.9% 11% 13% 9.5% 7.3% 11.1% 13.1% 11.2% 6.5% 10.6% 11.3% 15.7% 13.2% 14.1%12.5% 7.7% 12.6% 4.4% 13.4% 10.3% 5.2% 13.3% 13.7% 7.7% 10.4% 11.5% 13.5% 14.2% 10.7% 6.9% 10% 7.7% 14.3% 13.9% 9.2% 11.6% 3.2% 12.7% 12.6% 12.3% 13.4% 11.7% 10.6% 11.3% 12.4% 13.2% 14.2% 12.2% 10.2% 6.7% 15.4% 13% 11.7% 12.1% 12.8% 11.2% 11.7% 11.5% 11.9% 10.2% 11.7% 11.1% 11.2% 13.3% 11.3% 12.5% 10.4% 13.3% 11.4% 10.5% 15.9% 10% 18.8% 13.9% 9.4% 15.7% 11.2% 13.9% 15.5% 3.2% - 10.2% 10.3% - 11.7% 11.9% - 13.3% 13.4% - 18.8% Source: Kansas Social and Rehabilitation Services Kansas Average: 11.4% Rural Average: 11.3% Urban Average: 11.8%

10. Numbers of Children in Informal Care (Estimated) for Kansas Counties 26 4 1 -1* 9 83 56 41 1364 56 64 576 50 10 -2 58 37 21 80 954 254 12 -25 42 352 219 116 81 38 387 16 49 27 38 35 39 -19 61 -16 88 140 314 130 12 185 133 -25 83 76 105 147 -65 869 152 -17 482 149 729 178 -18 32 1144 146 111 -877 21 213 119 279 163 104 -15 329 170 -41 -92 138 239 214 409470 -39 -884 10553 110 233 245 -91 123 437 105 473 174 419 1450 533 -393 -4730 6279 -200 1711 3305 -4730 ~ 12* invalid estimates 13 ~ 85 86 ~ 250 251 ~ 10553 Source: Kansas Social and Rehabilitation Services & Census 2000 KS Children informal care: 38,370 (28%**) Rural Children informal care : 12,808 (25%**) Urban Children informal care : 25,561 (30%**) ** % of children < 6 with working parents in informal child care arrangements) (Children under 6 years old)

11. Estimated Cost of Informal Child Care for Kansas Counties (In millions of dollars) $2.65 $5.10 $1.13 $1.54 $0.94 $1.59 $0.35 $0.47 $0.14 $0.00 $0.17 $5.05 $0.05 $0.21 $0.00* $0.07 $0.28 $0.20 $0.43 $1.15 $0.01 $0.51 $0.94 $0.62 $0.22 $0.00 $0.01 $0.02 $0.09 $0.39 $0.60 $0.06 $3.70 $0.20 $0.65 $0.00 $2.01 $0.41 $3.24 $0.00 $0.65 $0.00 $0.05 $62.82 $0.58 $0.00 $0.17 $0.01 $0.00 $1.01 $0.36 $0.14 $1.10 $0.11 $0.00 $0.66 $0.00 $0.07 $0.00 $0.07 $0.00 $0.12 $0.19 $0.43 $0.45 $1.46 $0.14 $0.78 $0.19 $0.17 $0.57 $1.24 $0.94 $1.41 $0.19 $2.02 $0.03 $0.00 $0.09 $0.00 $0.87 $0.96 $0.57 $0.40 $2.26 $8.25 $0.27 $1.62 $0.65 $0.00 $0.13 $0.00 $0.06 $0.00 $2.28 $49.97 $0.00 $0.25 $9.26 $2.37 $0.00 $17.32 $0* estimate not available $0.01-0.25 $0.26-$1.00 $1.01 -$62.82 Kansas Total: $ 210 million Rural Total : $ 52 million Urban Total:$ 158 million Source: Kansas Social and Rehabilitation Services.

12. Conclusions and questions Informal childcare is important in terms of providing alternatives for parents and guardians and also as an economic engine How can this information inform policy at the state, national and local levels? How can we refine the estimates that we’ve made about the informal child care sector?

13. Contact information Amy Lake, Extension Associate Phone: 573-882-5412 Email: lake@missouri.edulake@missouri.edu Eun-Young Choi, Graduate Research Assistant Phone: 573-882-5766 Email: ecd26@mizzou.edu Community Policy Analysis Center – UMC 215 Middlebush Hall Columbia MO 65211