Figure B

Nearly all states' economies would grow from policies that limit families' child care expenditures: Increase in size of state economy from capping out-of-pocket infant care expenditures at 10% of income

State Increase in state economy Increase in state economy (in millions) Increase in state economy Increase in state economy (in millions)
Alaska 1.0% $562 1.9% $1,099
Alabama 0.3% $655 1.8% $3,665
Arkansas 0.8% $954 2.1% $2,518
Arizona 1.3% $3,853 2.1% $6,083
California 1.5% $33,498 2.1% $49,529
Colorado 1.5% $4,437 2.2% $6,595
Connecticut 1.2% $3,033 2.1% $5,340
Washington D.C. 1.6% $1,916 1.9% $2,246
Delaware 1.2% $774 2.1% $1,356
Florida 1.2% $10,404 2.1% $17,781
Georgia 1.0% $4,594 2.1% $10,156
Hawaii 0.3% $219 1.7% $1,321
Iowa 1.1% $1,793 2.1% $3,645
Idaho 0.9% $545 2.1% $1,340
Illinois 1.6% $11,490 2.3% $16,821
Indiana 1.2% $3,948 2.2% $6,989
Kansas 1.5% $2,177 2.3% $3,329
Kentucky 0.5% $939 1.8% $3,330
Louisiana 0.2% $625 1.7% $4,356
Massachusetts 1.6% $7,075 2.3% $10,271
Maryland 1.3% $4,378 2.1% $7,240
Maine 1.1% $623 1.9% $1,009
Michigan 1.3% $5,708 2.1% $9,284
Minnesota 1.5% $4,833 2.3% $7,237
Missouri 1.1% $3,180 2.3% $6,557
Mississippi 0.3% $290 1.9% $1,971
Montana 1.1% $472 2.0% $872
North Carolina 1.5% $7,135 2.4% $11,550
North Dakota 0.4% $232 1.7% $941
Nebraska 0.7% $771 2.0% $2,170
New Hampshire 0.9% $625 1.8% $1,252
New Jersey 0.7% $3,968 1.8% $9,931
New Mexico 1.4% $1,268 2.3% $2,122
Nevada 1.4% $1,925 2.2% $2,975
New York 1.6% $22,580 2.3% $31,736
Ohio 1.1% $6,583 2.2% $12,401
Oklahoma 0.8% $1,405 1.9% $3,429
Oregon 1.6% $3,333 2.3% $4,792
Pennsylvania 1.1% $7,560 2.0% $13,172
Rhode Island 1.5% $832 2.3% $1,230
South Carolina 0.7% $1,285 1.8% $3,351
South Dakota
Tennessee 0.4% $1,087 1.6% $4,897
Texas 1.2% $20,139 2.2% $35,942
Utah 0.8% $1,128 1.9% $2,692
Virginia 0.9% $4,176 2.0% $9,117
Vermont 1.3% $375 2.1% $623
Washington 1.4% $5,966 2.1% $8,978
Wisconsin 1.4% $4,093 2.2% $6,509
West Virginia 1.1% $787 1.9% $1,439
Wyoming

Note: These estimates use each state's median income for families with children and use Blau's (2001) finding that decreasing child care costs by 1 percent increases mothers' labor force participation by 0.2 percent.

Source: EPI analysis of CCAA (2015), U.S. Census Bureau American Community Survey, Current Population Survey Outgoing Rotation Group microdata, Blau (2001), and BEA (2016)

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