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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.

Download the brief

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