Child Care Arrangements in Urban and Rural Areas. Out-of-Pocket Expenses

06/30/2008

In addition to providing descriptions of child care arrangements, the NHES also shows the amount of out-of-pocket expenses paid by their families.  Unlike the expenses shown on some surveys, the amounts shown on the NHES represent the amount the families paid for each child, instead of the total amount the families paid for all children in the household.[12]

As shown in Figure 6, urban children were more likely than rural children to be in families that made out-of-pocket contributions toward the cost of their care; 62 percent of rural children and 68 percent of urban children lived in families that made out-of-pocket payments for child care.[13]  Rural children were also less likely to live in families that made high out-of-pocket contributions toward the price of care.  For example, compared to rural children with employed mothers, urban children with employed mothers were more than twice as likely to live in families contributing at least $100 weekly and were more than three times as likely to live in families that contributed at least $150 weekly towards the price of their care when they participated in non-parental care (see Figure 7).


Figure 6:
Percent of Children Age 0 to 5 and Not Yet in Kindergarten
in Weekly Non-Parental Care Arrangements
Whose Families Make Payments Toward the Cost of Their Care

Figure 6

  ** Urban/rural difference = p < 0.05
*** Urban/rural difference = p < 0.01


Figure 7:
Percent Distribution of Children Age 0 to 5 and Not Yet in Kindergarten
in Categories Based on Out-of-Pocket Fees Paid by the Families Toward Their Weekly Child Care Expenses

(Restricted to Children with Employed Mothers)

Figure 7

  ** Urban/rural difference = p < 0.05
*** Urban/rural difference = p < 0.01


Table 1 and Table 2 provide additional NHES tabulations on the price of child care in urban and rural areas by showing the average hourly and weekly out-of-pocket expenses for children that lived in families that contributed at least part of the costs of care.  Compared to fees paid by families in urban areas, average fees paid were smaller across all types of care arrangements in rural areas.  For example, the average hourly amount paid per child for rural children was $0.79 per hour lower for relative care, $1.55 per hour lower for non-relative care, and $.98 per hour lower in center programs than average payments for urban children.  The average fees paid for rural children also remained smaller than urban children when examining payments made by different types of families, as shown in Table 2.  For example, the families of urban children with employed mothers paid $.94 more per hour for child care than families of rural children.


Table 1:
Average Hourly Out-of-Pocket Expenses
Paid per Child Age 0 to 5 and
Not yet in Kindergarten for
Weekly Non-Parental Care
[14]

   Urban   Rural  U.S. Total
Hourly Expenses
Relative** $2.51 $1.72 $2.34
Non-Relative*** $4.13 $2.58 $3.73
Center Program*** $4.17 $3.19 $4.00

  ** Urban/rural difference = p < 0.05
*** Urban/rural difference = p < 0.01


Table 2:
Average Weekly and Hourly Out-of-Pocket Expenses
Paid Per Child Age 0 to 5 and
Not yet in Kindergarten for
Weekly Non-Parental Care

   Urban   Rural  U.S. Total
Hourly Expenses
All Children*** $3.53 $2.50 $3.32
Children with Employed Mothers*** $3.42 $2.48 $3.22
Children with Employed Single Mothers** $2.04 $1.47 $1.96
Weekly Expenses
All Children*** $88.12 $63.79 $83.19
Children with Employed Mothers*** $97.74 $70.05 $91.87
Children with Employed Single Mothers** $68.23 $51.81 $65.87

  ** Urban/rural difference = p < 0.05
*** Urban/rural difference = p < 0.01


[12]  In some cases, parents reported expenses for more than one child.  In these circumstances, out-of-pocket expenses were calculated by dividing the total payments by the number of children for whom care was paid.  If a child received care in more than one arrangement, the costs of each arrangement were summed to obtain a total weekly dollar amount. Costs per hour were obtained by dividing the total weekly cost paid by the total number of hours children spent in all arrangements in a week.

[13]  The percentages shown in Figure 6 may be higher than percentages reported in other studies because they include only children that participated in weekly non-parental care.  Children are excluded if they did not participate in non-parental care.

[14]  The averages presented here include all children that received non-parental care and lived in families that made out-of-pocket payments toward the cost of care, regardless of whether or not the children’s parents were employed.

View full report

Preview
Download

"report.pdf" (pdf, 115.11Kb)

Note: Documents in PDF format require the Adobe Acrobat Reader®. If you experience problems with PDF documents, please download the latest version of the Reader®