Childcare over the Business Cycle

Jessica H. Brown, Chris M. Herbst

Research output: Contribution to journalArticlepeer-review

Abstract

We estimate the impact of macroeconomic conditions on the childcare market. We 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, childcare employment requires more time to recover than the rest of the economy. Although the reduction in supply may pose difficulties for parents, we find evidence that center quality is countercyclical. When unemployment rates are higher, childcare workers have on average higher levels of education and experience, turnover rates are lower, and consumer reviews on Yelp are higher.

Original languageEnglish (US)
Pages (from-to)S429-S468
JournalJournal of Labor Economics
Volume40
Issue numberS1
DOIs
StatePublished - Apr 2022

ASJC Scopus subject areas

  • Industrial relations
  • Economics and Econometrics

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