Thread by @SophieMoullin

#Biden's #childcare proposal seems to mix 2-3 policy approaches:
1. Public pre-K for 3 & 4 year olds.
2. (a) Tax credits for any childcare for 0-5 ($8k/ child)
_OR_ (b) A subsidy for a private childcare place up to 7% family income.
Some concerns: 1/10

1/ Demand-led public subsidies do not reduce costs. AUZ in 90s: subsidizes parents --> providers increase fees in line with subsidies. NZ in 2000s: funds supply --> incentivizes quality *and* reduces gov spend per child. ippr.org/publications/d…

2/ Childcare is expensive. Private providers have tiny margins. They rely on cross-subsidy from older kids (where higher ratios are allowed) -- public pre-K in NYC *lowered* provision for toddlers, babies in high poverty neighborhoods. scholar.princeton.edu/sites/default/…

3/ Effects on maternal employment are overstated (esp. where welfare reform mandates it for many). In the UK, only 1 in 4 of the places substantially public subsidized for 3/4 year olds, were newly created by policies iser.essex.ac.uk/files/projects…

4/ Expansions of private childcare provision through [effective] price caps, even with increased regulation, training and pay for caregivers, are associated with *negative* effects for children. The Quebec case can't simply be ignored: economics.mit.edu/files/3103

5/ The oft-quoted 'returns' to childcare actually come from particular intensive and holistic early childhood programs, for low income kids. The primary mechanism identified is a reduction in the behavioral problems that Quebec increased: pubs.aeaweb.org/doi/pdfplus/10…

6/ Even when credentials and standards are increased w subsidies for childcare, it does not necessarily result in higher quality, or better pay. It didn't in the UK: epi.org.uk/publications-a…

7/ A higher min. wage obviously helps the 'low skilled', but it doesn't exorcize the, frankly sexist and racist, idea that care work is low skilled. In the US, private childcare providers have met stronger state regulations by *reducing* care workers’ pay. sciencedirect.com/science/articl…

8/ The benefits of (actually existing) preschool are small and short-term. Just like the benefits of schools. Schools can't compensate for social inequality -- and preschools can't compensate for schools. Especially if they simply extend school by 2 years. files.eric.ed.gov/fulltext/ED595…

9/ In the successful Nordic systems, early childhood education is a profession, insulated from market pressures. It complements, rather than substitutes for, generous family income and leave policies - and labor regulations (e.g. right to work reduced hours as a parent). /end

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