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The childcare sector has significant economic effects as research has clearly established. But what of the spatial dimensions of childcare? This study focuses on two issues: the spatial variation in the economic effects of the childcare sector in the state of Kansas and its economic spillovers. The paper uses data from Kansas state agencies on the state’s formal childcare sec-tor to calculate local effects and interregional spillovers. The result shows that the economic effects of the formal childcare sector vary significantly among regions of the state. The sector differs from region to region due to the variation in cost, mix of facilities, relative importance of the informal sector, and the size of economic multipliers. The study also finds significant spillover effects from rural to urban regions. From this result, we conclude that government support for the childcare sector in rural areas has large economic implications for the entire state.


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