Child Care: From Market Failure to Strategic Investment

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High-quality child care is an essential service that benefits children, families, and the economy. However, rising costs and fragmented workforce structures are contributing to an overall market failure. Many families are finding reliable care to be out of financial reach, early educators are not earning livable wages, and child care programs are struggling to stay open.  

These challenges limit family stability, workforce participation, and long-term economic growth, but deepening the understanding of these failures can help identify real solutions. 

This brief reveals the broad benefits of high-quality care, explains why child care is a market failure, and highlights how government investment can strengthen families and deliver high returns for society.   

Learn more about building a child care system that centers family and economic success.

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Join us on September 30, 2025, to explore the latest Roadmap, expert insights, and strategies to strengthen support for young children and families.
Join us on September 30, 2025, to explore the latest Roadmap, expert insights, and strategies to strengthen support for young children and families.

State Policies to Promote Employer-Supported Child Care

Research suggests that the high cost of child care can lead many parents to limit their participation in the workforce, resulting in negative repercussions for families and the economy. Though increased public investment is needed

Approaches to Improving Early Educators’ Compensation

Early educators remain among the most underpaid workers in the nation despite playing a critical role in child development and enabling workforce participation for parents. Across the country, the median wage for early educators is