The U.S. Census Bureau and the Local Employment Dynamics (LED) Partnership in collaboration with the Council for Community and Economic Research (C2ER) and the Labor Market Information (LMI) Institute, welcomes Jessica Brown and Chris Herbst as they present, “Child Care over the Business Cycle.”
Brown and Herbst estimate the impact of macroeconomic conditions on the child care market. They find that the industry is substantially more exposed to the business cycle than other low-wage industries and responds more strongly to negative shocks than positive ones. Indeed, child care employment requires more time to recover than the rest of the economy. Although the reduction in supply may pose difficulties for parents, evidence finds that center quality is countercyclical. When unemployment rates are higher, child care workers have on average higher levels of education and experience, turnover rates are lower, and consumer reviews on Yelp.com are higher.