Factors Influencing the Neighborhood Supply of Childcare in Massachusetts
Wellelsey College WP 97-04
Posted: 16 Sep 1997
Date Written: July 1997
Using factor analysis, ordinary least squares estimation, and maximum-likelihood ordered probit estimation, we examine the relationship between the socioeconomic characteristics of neighborhoods and their supply of licensed childcare. We find that the supply of licensed childcare in Massachusetts is strongly and significantly related to the number of children in the population: the larger the population of children, the more abundant the community's supply of childcare services. We also find that the supply of licensed childcare is strongly and significantly related to certain socioeconomic characteristics of neighborhoods. Specifically, we find that, relative to more socioeconomically sound neighborhoods, the supply of licensed full-day center care is significantly lower in socioeconomically distressed neighborhoods, that is, in high density neighborhoods with a high proportion of poor children receiving public assistance and living in one-parent homes. We also find that the supply of full-day center care is significantly lower in neighborhoods with high proportions of infants and toddlers, high levels of residential mobility, high ratios of adult males to females, and low ratios of adults to young children. We find that socioeconomically distressed neighborhoods are better served by licensed family childcare homes but that they have a more limited supply of licensed family childcare homes than more socioeconomically sound neighborhoods. We find that the supply of licensed family childcare homes is strongly and significantly related to the labor force participation of neighborhood residents.
JEL Classification: H5, I3, R3
Suggested Citation: Suggested Citation