Annual Economic Impact of Child Care Gap

Bipartisan Policy Center's estimated economic impact of the U.S. child care gaps on households, businesses, and tax revenues. The annual impact indicates the immediate one-year impact of these gaps on the economy. BPC calculated both high and low estimates of the impact, to provide policymakers with a range of what the economic impact might be when using more and less conservative assumptions.

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According to the Bipartisan Policy Center, "Household Impacts" are the income losses parents incur from having to reduce their work hours or leave the labor force entirely. Meanwhile, "Business Impacts" are direct productivity losses such as hours of foregone worker productivity and continual pay and benefits paid to employees when they are not working. And "Tax Revenue Impacts" are the proportion of lost household and business income that would have contributed to government revenues, as well as future lost tax revenues from future lost household and business earnings.