Economic Impact of the Informal Childcare Sector in Kansas

The informal childcare sector provides a significant proportion of childcare in the U.S. However, because informal sectors are not captured in our national income accounting sys-tem, the value to our economy is largely unknown. This study examines the size of the infor-mal childcare sector in the state of Kansas. Using IMPLAN data we also calculate implicit multipliers for the sector in order to estimate the full economic effects of informal childcare on the economy of Kansas and its regions. We find that the informal childcare sector creates large economic effects compared to the formal childcare sector. More specifically, the study estimates that informal childcare created about 128,494 direct jobs within the sector, another 6,842 jobs in other sectors, and $971.5 million in total value added in Kansas in 2005. We found that families in non-metro areas are more likely to use informal childcare than those in metro areas. As a result, even though the non-metro multipliers are smaller than those of met-ro areas, the informal childcare sector generates larger economic effects in non-metro areas than metro areas in general.

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Journal Article
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Journal of Regional Analysis and Policy, Volume 44, Issue 1
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 Record created 2017-04-01, last modified 2018-01-18

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