Make wishtv.com your home page

Impact of child care costs on women’s workforce participation in Indiana

Impact of childcare costs on women’s workforce participation in Indiana

A new study by Ball State University’s Center for Business and Economic Research (CBER) shows how child care availability and costs affect women’s participation in the workforce in Indiana.

The study was conducted by CBER researchers Dr. Dagney Faulk and Michael Hicks, along with Madelyn Ponsier, a 2024 Ball State graduate. They looked at the economic factors that influence the need for child care services and the supply of child care workers.

The report, available on the CBER website, highlights that a lack of affordable and available child care is a major barrier for many families.

Key Points from the Study

Economic Decision-Making: For many families with children, it often doesn’t make financial sense for both parents to work. Faulk explained, “Child care is expensive. After taxes and child care costs, it often doesn’t pay off for both parents to work.”

In 2022, the median wage for a woman in Indiana was $21.53 per hour. After taxes and child care costs, a parent with two children and a spouse earning $57,000 annually would take home less than $4 per hour. To bring home $400 per week after taxes and child care costs, a parent would need to earn over $32 per hour. This shows the financial strain on working families.

Child Care Workforce and Women’s Employment: The study found that more child care workers lead to more women working. A 10-percent increase in child care workers is linked to a 0.4-percent increase in working women aged 25-34 and a 1-percent increase for those aged 35-44. Hicks noted, “More child care workers would help more women join the workforce, especially for families with school-aged children.”

Wage Considerations: Attracting more child care workers is tough because of low wages. Faulk said, “We need to raise wages for child care workers to attract more of them, as other jobs often pay better.”

Increasing the child care workforce by 10 percent would require about an 8 percent wage increase. This shows the need for better pay to attract and keep child care workers.

Hicks also shared more details about the study. The findings highlight the need for policies to make child care more affordable and available, which could help more women join the workforce.