One issue in conversations around access to childcare and its impact on labor force participation is the prospect of childcare costs imposing a significant financial burden on working families, potentially impeding labor force participation rates. Notably, low- and moderate-income households are disproportionately affected by rising prices in this sector.
Childcare is an indispensable service for the majority of single-parent and dual-working households to engage meaningfully in the labor force. Among families with young children, childcare and housing constitute substantial components of the household budget.
Using Florida as a case study, researchers from the Federal Reserve Bank of Atlanta and the University of Florida analyzed publicly available data to understand the potential financial strains encountered by families with young children seeking childcare services.