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CHILDCARE AND WORKING FAMILIES: NEW OPPORTUNITY OR MISSING LINK? - An evidence brief - Unicef
CHILDCARE AND WORKING FAMILIES: NEW OPPORTUNITY OR MISSING LINK?   1
An evidence brief

 CHILDCARE AND WORKING FAMILIES:
 NEW OPPORTUNITY OR MISSING LINK?
 An evidence brief
2   CHILDCARE AND WORKING FAMILIES: NEW OPPORTUNITY OR MISSING LINK?
    An evidence brief

    Authors: Emma Samman and Joan Lombardi

    Cover photo:
    © UNICEF/UN0220808/Matas
CHILDCARE AND WORKING FAMILIES: NEW OPPORTUNITY OR MISSING LINK?                                                             1
An evidence brief

Introduction
Childcare is a key pillar of the Family-Friendly Poli-             These statistics highlight the need for global action,
cies initiative, which advocates for government and                as encapsulated in the Sustainable Development
business support to families in providing nurturing                Goals (SDGs). In particular, the action needed relates
care for young children. This brief argues for greater             to the targets focused on ensuring that all young
investment in affordable and quality childcare, high-              children access quality early childhood programming
lighting its potential to secure a ‘triple dividend’ of            (4.2), valuing and supporting unpaid care work (5.4)
young children’s positive development, women’s em-                 and promoting decent work for all (8.5) – amid the
powerment and economic growth.                                     overriding pledge that ‘no one will be left behind’ and
                                                                   efforts will aim ‘to reach the furthest behind first’.9
Our starting point is a global crisis of care – which is
leaving millions of children without adequate support              Given that inadequate care provision curtails the
and placing severe constraints on their caregivers,                current and future productivity of caregivers and chil-
who are primarily mothers, grandmothers and girls.1                dren, it follows that providing high-quality care could
Several stylized facts underline these points.                     yield sizeable economic gains:

Currently, millions of children lack access to quality             • Unpaid work undertaken by women is valued
care:                                                                at up to $10 trillion yearly (13 per cent of global
                                                                     gross domestic product, or GDP) – one implica-
• In 76 low- and middle-income countries (LICs and                   tion is that between 2016 and 2025, gender parity
  MICs), just over one in five children under age 5                  in labour markets could boost global GDP by up to
  (some 45 million) lacked adult supervision for at                  $28 trillion.10
  least an hour in a given week.2
                                                                   • In member countries of the Organisation for Eco-
• In 67 LICs and MICs, nearly 57 million children                    nomic Co-operation and Development (OECD),
  aged 3 to 5 (69 per cent) did not attend an early                  closing the gap in female labour force participa-
  childhood education programme.3                                    tion could raise GDP by 12 per cent by 2030.11

• In LICs and MICs, 43 per cent of children under                  • Across 73 LICs and MICs, increasing preschool
  age 5 – an estimated 250 million – risk suboptimal                 enrolment to 50 per cent in a single year could
  development due to poverty and stunting.4                          grow a country’s productivity by US$33 billion
                                                                     across those children’s lifetimes, with a bene-
Care responsibilities often compromise women’s                       fit-to-cost ratio of between $6.4 and $17.6.12
economic empowerment:

• Across 37 countries, women took on 75 per cent
  of childcare.5

• In 2018, global female labour force participation
  stood at 48 per cent, compared with 75 per cent
  for men.6 Latin America is the only region where
  women’s participation has risen strongly since
  1990.7

• Across 89 countries, women in their prime repro-
  ductive years (25–34) are 22 per cent more likely
  than men to live in extreme poverty.8
2   CHILDCARE AND WORKING FAMILIES: NEW OPPORTUNITY OR MISSING LINK?
    An evidence brief

    Evidence and policy adoption
    For LICs and MICs, cross-national data on who is car-                            Data limitations notwithstanding, it is clear that
    ing for young children, the quality of that care and its                         one of the most important aspects of quality is the
    cost (both out-of-pocket costs incurred by families,                             training, supervision and support of the workforce.
    and public financing) are extremely limited – itself                             Studies have shown that early childhood education
    one example of how care is often neglected. Since                                professionals require at least some specialized
    such data are not well measured, making and evalu-                               education and training, geared both to affective di-
    ating policy that takes these figures into account is                            mensions of early childhood care and to learning and
    all the more difficult. However, a growing evidence                              cognition.14 A child’s day-to-day experiences in early
    base focuses on the benefits of investing in early                               learning settings, often known as ‘process quality’,
    childhood development.                                                           encompass interactions between caregiver and chil-
                                                                                     dren, and among children and their peers, as well as
    Precise figures on how much care is occurring across                             the quality of daily routines and the implementation
    different contexts are unavailable. The most recent                              of curricula.15 Evidence from studies in Latin America
    estimate was based on surveys from just 31 coun-                                 suggest extremely low levels of process quality.16, 17
    tries, the latest of which was from 2002.13 These
    surveys asked working women with children under
    the age of 6 years who cared for their children when
    they worked. The largest share – 39 per cent of re-
    spondents – reported looking after the children them-
    selves, while 22 per cent left them with a relative, 12
    per cent left them in the care of a female child, and
    4 per cent left them in a nursery or with a domestic
    worker. But there is little information about how rep-
    resentative these surveys are of wider patterns or
    trends, or if they are valid today.

    Typical childcare arrangement for employed women with children under age 6
    Very few empoloyed women in developing countries have access
    to organized childcare or nurseries

                                                                                                                     Poorest          Richest        Avarage
          45         44
          40               39
          35
          30              29
                                       26 28
          25                           22
          20                                             18
                                                                                                                    15
           15
                                                              12                                   10
           10                                                                5
                                                              5             4 5                4                4                  5 3               3
            5                                                                                                                                    2       3
                                                                                               1                0                     1
            0
                     Respondent        Other             Other            Neighbours/        Organized         Domestic           Other male     Husband/
                     herself           relatives         female           friends/           childcare/        worker/            child          partner
                                                         child            others             nursery           hired help

    Source: Unweighted averages calculated by UN Women using data from ICF International 2015.
    Note: N=31 developing countries. Surveys were conducted between 1995 and 2002. This indicator corresponds to the percentage of respondents
    answering the question ‘Who looks after your child(ren) while you are at work?’
CHILDCARE AND WORKING FAMILIES: NEW OPPORTUNITY OR MISSING LINK?                                                               3
An evidence brief

A lack of financing contributes to the ability to recruit          countries, a recent study estimated the cost of child-
and retain a qualified workforce. Often early child-               care or preschool for a 2-year-old at about 27 per cent
hood workers are undervalued, underpaid and inade-                 of an average worker’s gross wage, from about 3 per
quately prepared.18 This is true both in the non-profit            cent of average earnings in Austria to 50 per cent or
sector ‘which tends to run on ‘deeply gendered                     more in Australia, the Netherlands and the United
volunteerism’ that can at times amount to “self-ex-                Kingdom, among other countries.28
ploitation”’ and in the for-profit sector, ‘which tends
to offer jobs that are poorly paid, poorly respected               Costs notwithstanding, evidence is accumulating
and poorly protected’.19 Recent efforts by the Early               that public investments in early childhood develop-
Childhood Workforce Initiative have begun to doc-                  ment can produce tremendous gains, especially for
ument the challenges facing the workforce, with a                  disadvantaged children.29 Annual returns on such
series of recent case studies highlighting inadequate              investments start at 7 per cent and can be even high-
training, low renumeration and a lack of professional              er when the longer-term benefits of human capital
recognition.20 Without public resources, there will                development are factored in. For example, a 2016
continue to be trade-offs between the quality of care              study conducted in the United States analysed two
and the affordability of that care for parents, although           programmes that began in the 1970s and provided
overall, societies reap returns from the investments               free childcare for children ages 8 weeks to 5 years
made in young children.21                                          old in low-income families. The study found marked
                                                                   sustainable benefits in income, level of schooling,
A chief barrier that families face in accessing child-             health, quality of life and other aspects of adult de-
care is cost.22 Data amassed from country reports                  velopment.30 Pre-primary education is also the most
show that only 45 per cent of countries worldwide                  cost-effective stage of education: the opportunity
provide tuition-free pre-primary education, a figure               cost of children’s time is lowest; early interventions
which falls to 15 per cent for LICs.23 Moreover, sur-              are known to have larger effects on cognitive skills;
veys with caregivers24 and the spotty available data               and participation can spur enrolment and attainment
on the out-of-pocket costs of private formal care in               in later grades.31 Yet efforts to boost pre-primary at-
LICs and MICs point to significant expense. For ex-                tendance are vastly underfunded.
ample:
                                                                   In LICs and MICs, on average 0.08 per cent of
• a 2005 survey in Nigeria’s Edo state found that,                 GDP is spent on pre-primary education, whereas
  on average, private kindergarten for a single child              an estimated 0.32 per cent is needed to provide a
  cost more than half the salary of someone earn-                  year of universal pre-primary education, as per SDG
  ing the minimum wage.25                                          target 4.2 (a fourfold increase).32 A small number of
                                                                   countries have prioritized preschool: in Viet Nam,
• a study of four peri-urban areas of sub-Saharan                  the State of Palestine and the United Republic of
  Africa found that the average cost of a child in                 Tanzania, enrolment has risen by at least 20 per cent
  preschool represented between one quarter and                    in less than a decade.33 But the broader trend is that
  nearly half of an average person’s monthly spend-                government funding falls short, as does donor financ-
  ing.26                                                           ing: investments in early childhood education current-
                                                                   ly stand at 0.5 per cent of total education aid, a fig-
In Latin America, in contrast, where public sector                 ure that reflects a 27 per cent decline between 2015
involvement in providing childcare is extensive,                   and 2017.34 Moreover, investments needed in early
the evidence suggests that publicly supported pro-                 childhood go well beyond pre-primary education to
grammes are either affordable (below 10 per cent of                include health care, parental outreach and birth reg-
the average household per capita income) or mod-                   istration – as reflected in the recent call of the Devel-
erately so (between 10 per cent and 20 per cent).                  opment Working Group of the G20 Initiative for Early
At the same time, survey data from six countries                   Childhood Development for a minimum domestic
showed that among the third of households that pay                 benchmark of 1 per cent of GDP for early childhood
fees for childcare, average out-of-pocket expenses                 development, with LICs requiring additional interna-
represented more than 10 per cent of household                     tional assistance.35 The goal is 2 per cent of GDP.
income in all countries and nearly 30 per cent of in-
come in Guatemala.27                                               The other aspect of the situation is that the trade-
 In high-income countries, childcare is costly in                  offs that mothers face between caring for their
relation to people’s earnings, and some evidence                   children and engaging in paid work compromise
suggests that it has become more so. In 34 OECD                    their economic empowerment, not least by reducing
4   CHILDCARE AND WORKING FAMILIES: NEW OPPORTUNITY OR MISSING LINK?
    An evidence brief

    labour market engagement, entrenching segmenta-                    A key policy response is the development and expan-
    tion and increasing the likelihood of taking up work               sion of access to subsidized childcare, which raises
    that is part-time, informal, more insecure and home-               the probability of female employment and the num-
    based.36 Estimates of the cost of foregone paid                    ber of hours worked, notably where baseline levels
    work abound – e.g., in economies in Latin America                  of global female labour force participation are low.1
    and the Caribbean (where 50–60 per cent of wom-                    For example, an experiment in Nairobi found that use
    en participated in labour markets), Mateo Diaz and                 of subsidized childcare by poor women boosted their
    Rodriguez-Chamussy (2016) report losses ranging                    likelihood of employment by 20 percentage points,40
    from 3.5 per cent of GDP (Mexico) to 16.8 per cent                 gains that are echoed in studies from other parts of
    (Honduras), based on the education levels of women                 the world.41 Societies stand to benefit both from the
    outside the labour market.37 Poor working condi-                   economic returns to this increased female labour
    tions– such as long and unpredictable hours, shift                 supply and from the potential to create jobs and gen-
    work, long travel times, and unreliable and expensive              erate incomes within the childcare industry. But the
    transport – also compromise access to childcare.                   provision of childcare alone is insufficient to improve
    One way that women aim to reconcile this tension is                women’s labour market outcomes – complementary
    to take their children with them to their paid work, as            policies and investments are needed to promote ed-
    did 39 per cent of working women according to the                  ucation, maternity leave and other labour protections
    UN Women report described above.38 Such actions                    (particularly for informal workers) and workplace poli-
    put additional pressures on caregivers and risks ex-               cies such as flexible working arrangements.42
    posing young children to unsafe working conditions.

    Recommendations
    The call to action in the 2030 Agenda for Sustainable              Issues relating to early childhood development
    Development and the 2018 G20 Initiative for Early                  should not be separated from the broader family
    Childhood Development,43 together with the current                 context. So-called ‘whole family’ or ‘two generation’
    momentum around women’s economic empow-                            approaches recognize how parental education, eco-
    erment, provides an opportune moment to secure                     nomic stability and health affects children’s develop-
    transformative change in the lives of women and chil-              ment trajectories, and vice versa, and point to the
    dren. The overarching recommendation of this brief                 synergies that can result from providing early child-
    is that governments should aim to ensure universal                 hood services alongside support for families.44
    access to quality early childhood care for all children
    (including pre-primary education, childcare centres,               The historic bifurcation of childcare and education or
    home care) and support for informal care provided                  childcare and health stands in the way of address-
    by family, friends and neighbours). Public preschool               ing the whole needs of families. The new vision for
    resources should be integrated into settings that                  childcare must be seen as an opportunity rather
    are responsive to the diverse needs of working                     than a deficit, and as an opportunity to promote
    families, which should be seen as an opportunity to                safety and security, health, nutrition, education and
    promote education, health and nutrition as well as                 responsive caregiving – all key elements of nurtur-
    family engagement. Special efforts must be made                    ing care.45
    to recruit and retain a qualified early childhood work-
    force. Home visiting programmes and/or networks of
    support traditionally geared to parents can be used
    to reach home-based childcare providers with infor-
    mation, materials and training on child development.
    Moreover, the needs for care do not stop when chil-
    dren reach school age. Well-supervised and develop-
    mentally supportive settings must be assured after
    school hours and during the summer months when
    school may not be in session.

    1.   A notable global model is Mexico’s Estancias programme.39
CHILDCARE AND WORKING FAMILIES: NEW OPPORTUNITY OR MISSING LINK?                                                            5
An evidence brief

Recommendations for governments:                                    Other recommendations:

• Develop cross-sector national childcare plans that                • Invest in diagnostics to ascertain the benefits and
  assess the needs of working families (both those                    costs associated with providing or facilitating ac-
  in the formal and informal economies), develop                      cess to quality childcare.47, 48
  and realign early childhood policies to meet those
  needs, and promote innovative public and private                  • Canvass employee demand for and preferences
  partnerships.                                                       with respect to childcare services to help inform
                                                                      the design of apt and contextually relevant op-
• Mobilize and channel public funds to subsidize                      tions.49
  care provision (in homes, centres and other com-
  munity-based organizations) and to support the                    • Support public policies that promote financing to
  childcare workforce.                                                assure affordability and quality.

• Encourage private companies to assess employ-                     Finally, hybrid schemes based on public-private coor-
  ee childcare needs and invest in solutions to meet                dination offer huge potential.2
  those needs and those of the surrounding com-
  munity.
                                                                    Additional recommendations:
• Improve data collection of essential indicators on
  access to, quality of and costs of childcare, partic-             • Identify synergies and complementarities in
  ularly for low-income families.                                     terms of what public and private efforts can con-
                                                                      tribute (in terms of service provision and financ-
Employers stand to benefit from recognizing the                       ing) and the likely returns; and
business case for investing in childcare alongside
other family-friendly policies and putting in place ap-             • Set up innovative funding mechanisms to spur
propriate policies. Recent evidence – based largely                   investment in family-friendly policies such as
based on case studies of companies – demonstrates                     low-interest loans, earmarked taxes, payments by
that returns can be sizeable – as in Viet Nam, where                  results schemes and social impact bonds (which
textile producer Nalt Enterprise’s offer of childcare                 make returns to investment conditional on im-
reduced staff turnover by one third, or in Jordan,                    proved social outcomes).50
where after the establishment of a workplace creche
at garment manufacturer MAS Kreeda Al Safi-Mada-
ba, absences due to sick leave fell 9 per cent in nine
months.46

2.   Examples are Mobile Crèche in India, Kidogo Innovations in Kenya, and Smartstart in South Africa.
6   CHILDCARE AND WORKING FAMILIES: NEW OPPORTUNITY OR MISSING LINK?
    An evidence brief

    Endnotes
    1.    Samman, Emma, et al., ‘Women’s Work: Mothers, children                   ington, DC, 2016, < http://documents.worldbank.org/
          and the global childcare crisis’, Overseas Development Insti-            curated/en/474431473958525937/pdf/108285-revised-pub-
          tute, London, March 2016, .
          org.uk/files/odi-assets/publications-opinion-files/10333.pdf>.     16.   Berlinski, Samuel and Schady, Norbert, ‘More Bang for the
    2.    United Nations Children’s Fund, Every moment matters for                 Buck: Investing in early childhood development.’ The Early
          every child, UNICEF, New York, 2017, .                                                   January 2015, pp. 149-178.
    3.    Ibid.                                                              17.   Araujo, M. C., ‘How to Promote High-Quality Child Care
    4.    Richter, Linda M., et al., Advancing Early Childhood Devel-              Services in Latin America’, IADB. Washington DC, 2017,
          opment: from Science to Scale 3 Investing in the foundation              .
          childhood development, The Lancet, 2016, .                                           and Supporting the Early Childhood Workforce’, Early Child-
    5.    Samman, Emma, et al., ‘Women’s Work: Mothers, children                   hood Matters: Advances in Early Childhood Development
          and the global childcare crisis’, Overseas Development Insti-            127, 2018, pp. 59-64.
          tute, London, March 2016.                                          19.   Samman, Emma, et al., ‘Women’s Work: Mothers, children
    6.    World Bank, World Development Indicators. Washington DC,                 and the global childcare crisis’, Overseas Development Insti-
          2019, .
    7.    Klasen, Stephan, ‘What Explains Uneven Female Labor                20.   Early Childhood Workforce Initiative, ‘Country Briefs’, 2019,
          Force Participation Levels and Trends in Developing Coun-                .
          tries?’, Discussion Paper No. 246, Courant Research Centre:        21.   Folbre, Nancy, ‘Children As Public Goods’, The American
          Poverty, Equity and Growth, 2018, .
    8.    United Nations Entity for Gender Equality and the Empow-           22.   Moussié, Rachel, ‘Childcare From the Perspective of Women
          erment of Women, UN Women and the World Bank Unveil                      in the Informal Economy’, UN Secretary-General’s High-Level
          New Data Analysis on Women and Poverty, UN Women,                        Panel on Women’s Economic Empowerment, 2016, .                                         23.   Milovantseva, Natalie, et al., ‘Monitoring Progress Toward
    9.    United Nations General Assembly Resolution 70/1, Trans-                  Meeting the United Nations SDG on Pre-primary Education:
          forming our world: the 2030 Agenda for Sustainable Devel-                An important step towards more equitable and sustainable
          opment, A/RES/70/1, October 2015, .                                                               vol. 13, no. 4, 2018, pp.122-143, .
          ity Can Add $12 Trillion to Global Growth’, McKinsey & Com-        24.   Bhatkal, Tanvi, ‘What Do Women Want? Gender, percep-
          pany, 2015, .                  25.   Olubor, Roseline O., Private Cost Analysis of Pre-School
    11.   Thévenon, Olivier, et al., ‘Effects of Reducing Gender Gaps              Education in Nigerian Private Schools, J Soc Sci, vol.19, no.2,
          in Education and Labour Force Participation on Economic                  2009, pp.141-148, .            26.   Bidwell, Kelly and Watine, Loïc, ‘Exploring Early Education
    12.   Engle, Patrice L., et al., ‘Strategies for Reducing Inequalities         Problems in Peri-urban Settings in Africa: Final Report’, In-
          and Improving Developmental Outcomes for Young Children                  novations for Poverty Action, Newhaven, CT, 2014, .
          .                   27.   Díaz, Mercedes M. eand Rodriguez-Chamussy,
    13.   United Nations Entity for Gender Equality and the Empower-               Lourdes. ‘Cashing in on Education: Women, childcare, and
          ment of Women, Progress of the World’s Women 2015–2016:                  prosperity in Latin America and the Caribbean’, Interna-
          Transforming economies, realizing rights, UN Women, New                  tional Bank of Reconstruction and Development and The
          York, 2015, < http://www.unwomen.org/en/digital-library/pub-             World Bank, Washington, DC, 2016, .                     iadb.org/publications/english/document/Cashing-in-on-Ed-
    14.   United Nations Educational, Scientific and Cultural Organi-              ucation-Women-Childcare-and-Prosperity-in-Latin-Ameri-
          zation, Global Monitoring Report: Education for All 2000-                ca-and-the-Caribbean.pdf>.
          2015 - Achievements and Challenges, UNESCO, Paris, 2015,           28.   Organisation for Economic Co-operation and Development,
          .                    OECD Family Database, 2017, .
          the quality of early learning programs, World Bank, Wash-
CHILDCARE AND WORKING FAMILIES: NEW OPPORTUNITY OR MISSING LINK?                                                                             7
An evidence brief

29.   Heckman, James J., ‘Schools, Skills, and Synapses’, Eco-         40.   Clark, Shelley, et al., ‘Can Subsidized Early Child Care Pro-
      nomic Inquiry vol. 46, no. 3, 2008, pp.289-324, .                                           ment in Africa’, Grow Working Paper Series (GWP-2017-05),
30.   García, Jorge L., et al., ‘Quantifying the Life-Cycle Benefits         Institute for the Study of International Development, Mon-
      of a Prototypical Early Childhood Program’, Working Paper              treal, Canada, 2017, .
      .                            41.   Ibid.
31.   Psacharopoulos, George ‘Benefits and Costs of the Educa-         42.   Ibid.
      tion Targets for the Post-2015 Development Agenda: Educa-        43.   Ibid.
      tion perspective paper’, Copenhagen Consensus Center, July       44.   Ascend at the Aspen Institute and the Bernard Van Leer
      2014, .              Approach, September 2016, .
      ment: An analysis of international and domestic sources in       45.   World Health Organization, UNICEF, World Bank Group, EC-
      low-and middle-income countries’, Results for Development              DAN, The Partnership for Maternal Newborn & Child Health,
      Institute, Washington, DC, August 2016.                                ‘Nurturing Care for Early Childhood Development: A frame-
33.   Zubairi, Asma and Rose, Pauline ‘Leaving the Youngest Be-              work for helping children survive and thrive to transform
      hind: Declining aid to early childhood education’, Theirworld,         health and human potential’, WHO, Geneva, 2018, .                                            46.   International Finance Corporation, Tackling Childcare: The
34.   Ibid.                                                                  business case for employer-supported childcare, IFC, 2017,
35.   Britto, Pia, et al., ‘G20’s Initiative for Early Childhood De-         .
36.   Hunt, Abigail and Samman, Emma, ‘Women’s Economic Em-            47.   Ibid.
      powerment: Navigating Enablers and Constraints’, Overseas        48.   Gammage, Sarah, et al., The Hidden Costs of Unpaid Caregiv-
      Development Institute, London, 2016, .                  Washington, DC, March 2019, pp. 21-23, .
38.   Ibid.                                                            49.   Ibid.
39.   Ibid.                                                            50.   Ibid.
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CHILDCARE AND WORKING FAMILIES: NEW OPPORTUNITY OR MISSING LINK?   9
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10   CHILDCARE AND WORKING FAMILIES: NEW OPPORTUNITY OR MISSING LINK?
     An evidence brief

     Published by UNICEF
     Early Childhood Development
     3 United Nations Plaza
     New York, NY 10017, USA

     For the latest data, please visit:
     www.unicef.org/early-childhood-development/family-friendly-policies

     © United Nations Children’s Fund (UNICEF)
     July 2019
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