We develop and estimate a model of child care markets that endogenizes both demand and supply. On the demand side, families with a child make consumption, labor supply, and child-care decisions within a static, unitary household model. On the supply side, child care providers make entry, price,...

Many preschool-age children in the U.S. attend center-based child care programs that are of low quality. This paper examines the extent to which teacher qualifications – widely considered important inputs to classroom quality - are valued by providers during the hiring process. To do so, we...

This paper combines multiple data sources to study the impact of the minimum wage on service quality and consumer well-being within the child care market. Although child care firms increase teacher pay in response to minimum wage reforms, we find no impact on employment levels. Instead,...