The Impact of a $15 Federal Minimum Wage on the Cost of Childcare

A $15 federal minimum wage would generate a cascade of unintended consequences across the U.S., including a significant increase in the cost of childcare.

According to this analysis, childcare costs would increase by an average of 21 percent across the states, increasing childcare bills by an average of $3,728 for parents with two children. Some areas would be especially hard hit, with 40 percent or greater cost increases, likely making daycare unaffordable and disrupting the labor market for millions of Americans. Policies that would free up resources for childcare providers to devote to wages and that would help workers achieve lasting income gains without harming others offer better solutions.

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