The Importance of Child Care in Economic Development: A Comparative Analysis of Regional Economic Linkage

Regional economic developers typically use input-output modeling to compare the linkage effects of different targets for economic development policy. Using input-output models for all 50 states in the United States, the authors compare child care linkage effects to economy-wide averages and median multiplier values for agriculture, manufacturing, and services. Multiplier analysis shows that child care linkage effects are similar to these more typical targets for economic development policy and provides one more reason why child care should be included as part of economic development policy.