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A study from Ball State University's Center for Business and Economic Research showed the need for better pay to attract and keep child care workers. (Adobe stock)
A new study from Ball State University's Center for Business and Economic Research revealed how child care availability and costs affect women's workforce participation in Indiana.
Michael Hicks, director of the center, said the study examined economic factors influencing child care demand and the supply of child care workers. In 2022, the median wage for women in Indiana was slighter over $21 per hour. Hicks argued it is not enough and highlighted the financial strain on families.
"If you're a woman entering the labor force and you have two kids and your husband or your spouse is working at $57,000 a year, you have to earn almost $24 an hour before you're taking home the equivalent of minimum wage," Hicks pointed out.
Hicks added the same parent would need to earn more than $32 per hour to bring home $400 per week after taxes and child care costs. He explained the study identified for many Hoosier families with children, the decision for both parents to work is often financially impractical.
The study also found a 10% increase in child care workers correlates with a 0.4% rise in employment for women aged 25-34 and 1% for those aged 35-44, which Hicks acknowledged could be an uphill battle.
"I think it's going to be very difficult to make large scale expansions of child care," Hicks noted. "Simply because it's such an expensive shock to the overall economy for what are really transient benefits."
Hicks stressed an 8% wage increase is needed to boost the child care workforce, underscoring the necessity for better pay to attract and retain workers.
Joe Ulery, Producer
Wednesday, July 17, 2024