Boom in day care industry the result of many social changes

Monthly Labor Review, August, 1995 by William Goodman

In 1975, 16 percent of mothers with children under 6 did not have a spouse in the household; in 1993, that proportion increased to 26 percent.(9) One might expect that the absence of a working husband from the household would be a major explanation of why more mothers of young children are at work, but mothers with a husband in the household increased their jobholding far more. Between mothers of young children who had husbands with them and those who did not, the percentages at work were fairly close in the mid-1970's; but women with spouses present increased considerably in percentage employed, while those without spouses present increased only slightly in percent employed. Exact percentages, derived from Current Population Survey data, are shown in the following tabulation:

1975 1993 Mothers of children under age 6:

With spouse in household 32 56

Without spouse in household 42 44 Mothers of children aged 3 to 5:

With spouse in household 37 60

Without spouse in household 49 55

Changes in needs and preferences that caused more of these mothers to go to work affected the group with a husband in the household far more than those without a husband. The group with a spouse present also is much larger. Women who live with their husbands, therefore, made the far heavier contribution to the increased employment of mothers of young children.

The number of working women in general also is important as a factor in the demand for child care: not only mothers but also other relatives who might be available to watch children,(10) become unavailable as a greater percentage of the population becomes employed. From 1972 to 1993, the overall employment-to-population ratio increased from 57.0 percent to 61.6 percent. Although the employment-to-population ratio of men decreased by 5 percent, the ratio among women increased by 13 percentage points to 54.1 percent. At the start of the latest post-recession period, from early 1991 to the end of 1993, job growth among woman was greatest among 45-to-54-year-olds. Seventy-two percent of women in that age range were employed at the end of the period(11)--implying that a great many grandmothers and older aunts are not available as they once were to watch children during the day.

While comprehensive, clear statistics are not available to show a shift from care by relatives to care in centers among all children, the Census Bureau has estimated use of various child-care arrangements by families with working mothers and children under 5 in various years. The results indicate that from 1977 to 1991, use of child care centers increased by 10 percentage points, from 13 percent of such families to 23 percent. Care by relatives other than parents dropped the most, from 31 percent to 24 percent.

In addition, 1991 results appear to have been influenced by the recession and the continued post-recession decline in employment. An abnormally large number of laid-off relatives may have been temporarily available to care for children in 1991. Results from 1990, when employment was not so abnormally depressed, may better typify the 1990's. Indeed, 1990 shows more care in centers and less care by relatives than in 1991. From 1977 to 1990, care in centers more than doubled, increasing from 13 percent to 28 percent, as opposed to 23 percent in 1991. The following tabulation shows the primary child care arrangement in families with children under age 5 and a working mother in selected years (in percent):(12)