Performance Improvement 2006. Child Care Assistance and the Market for Child Care in Minnesota


The study analyzes trends in the price of child care in Minnesota using data from market rate surveys from 1998 through 2004. The approach uses descriptive statistical analysis to compare trends in prices by age, type of care, and region of the state. Trends in the dispersion or variation of prices within regions are also compared. The study found that child care rates in Minnesota have increased about five to six percent per year over the time period, not adjusting for inflation. This rate of increase is similar to the rate of price increases for educational services nationwide (based on the Consumer Price Index). Price trends were similar across age groups and types of care, except for hourly rates of family child care providers outside the Minneapolis-St Paul metro area, which barely rose over the time period. Rising child care prices may have implications for the affordability of child care for families and the type of care they use.

PIC ID: 8216; Agency Sponsor: ACF-ACYF, Administration on Children, Youth and Families; Federal Contact: Martinez-Beck, Ivelisse, 202-690-7885; Performer: Minnesota Department of Human Services, St. Paul, MN

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