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Helburn, S.W., Morris, J.R., & Modigliani, K. (2002). Family child care finances and their effect on quality and incentives. Early Childhood Research Quarterly, 17(4), 512-538.
This study examined financial data of regulated and unregulated family child care providers. The goal of the study was to provide insight into finances for recruiters, trainers, and new providers.
The Study
- Family child care encompasses many types of care. This study focused on the finances of family child care providers who earn a consistent income from providing child care.
- Data on family child care is limited mostly due to accessibility issues.
- Regulatory status can affect finances and quality of care. Other factors often include race, ethnicity, geographic region, and urban/rural location.
- Overall, it is difficult to track family child care financing due to varying degrees of IRS reporting.
The Methods
- The sample was drawn from the Family Child Care and Relative Care (FCCRC) study. Providers lived in one of three areas: Los Angeles, Charlotte, NC, or Dallas. The sample of this study included 129 providers.
- Gross income was calculated as equal to the sum for each child plus fees for occasional care plus any grant funding.
The Findings
- Providers with three or less paying full-time children in their homes were less likely to treat child care as a business.
- However, they were similar to other providers in sensitivity to children in their care.
- Many smaller providers were unlikely to be licensed.
- Family child care providers on average earned 59% less than if they had paid employment outside of the home.
R2P Evaluation
The authors cited several data integrity issues including an inability to truly calculate individual providers actual incomes. However, the research study did highlight differences between providers based on number of children in care. Policy implications could include the issue of regulation versus non-regulation and the importance of quality in family child care.
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