Why Childcare Is So Expensive But Staff Are So Underpaid: Planet Money : NPR

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Wesley Wade and his wife, Giovanni, couldn’t find daycare to take care of their two children, Helena and Ella. Wesley, a mental health counselor who was working on his doctorate, eventually quit his job to take care of his two daughters. Childcare shortages are a problem across the United States.

Wesley Wade

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Wesley Wade

Anyone who has tried to find daycare knows that it is difficult.

First, it’s difficult to get information about costs, either online or over the phone—daycare centers usually won’t tell you prices until you’ve toured the facility. And even if you find a place you like, many daycare centers have waiting lists that are six, nine, or even a year long.

Wesley Wade and his young daughter Ella.

Giovanni Wade

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Giovanni Wade

Wesley Wade and his young daughter Ella.

Giovanni Wade

Waiting lists are a classic economic sign that something is wrong and that prices are too low. But ask any parent and they will tell you that daycare prices are actually too high. High.

According to a recent report from the U.S. Treasury Department, more than 60% of families can’t afford the full cost of high-quality daycare. Meanwhile, daycare owners can barely keep their doors open. No one is happy.

On today’s show, we’re going to take a deep dive into the very weird, very imperfect daycare market. We’re going to try to understand how this market simultaneously puts a strain on parents’ budgets while underpaying employees. We’re also going to look at some possible solutions.

This show was produced by Sam Yellowhorse Kesler. Emma Peaslee helped with programming. Gilly Moon was in charge of mastering. Keith Romer edited this episode. Jess Jiang was our acting executive producer.