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Child care costs vary widely across OECD countries
A study of child care costs in OECD countries reveals significant disparities. While some countries have implemented measures to make child care more affordable, others struggle to meet the recommended 7% threshold. The relationship between child care costs and economic participation is complex, with trade-offs between affordability and quality of care.
The essential points
- 01Child care costs in OECD countries range from 7% to over 20% of average joint income.
- 02Some countries, like South Korea and Germany, have introduced free or subsidized child care to boost birth rates.
- 03However, universal free schemes can harm children's long-term development due to lower quality care.
- 04There is limited evidence that these schemes encourage couples to have more children.
The full brief
A study of child care costs in OECD countries reveals significant disparities. While some countries have implemented measures to make child care more affordable, others struggle to meet the recommended 7% threshold. The relationship between child care costs and economic participation is complex, with trade-offs between affordability and quality of care.