Economic Impact of Child Care Industry

Through a collaboration between researchers at the Georgia State University Andrew Young School of Policy Studies and the University of Georgia’s Carl Vinson Institute of Government, DECAL has commissioned three studies on the economic impact of the child care industry in Georgia. Findings from the first study were released in 2008 and from the second study in 2016. The third study is ongoing, and reports will be released in phases; initial findings were released in 2024. Descriptions of each study and their associated reports are listed below.

Economic Impact of the Child Care Industry, 2021

This is the second report of the third study from DECAL’s ongoing partnership with researchers from Georgia State University and the University of Georgia to study the short-term economic impact of Georgia’s early care and education (ECE) industry. This analysis was conducted as the state began recovering from the disruptions of the COVID-19 pandemic and builds upon the first report released in 2024. This report finds that Georgia’s ECE industry generated $6.04 billion in total economic activity in 2021 and employed over 64,000 individuals, with an additional 16,500 jobs supported in other sectors. Despite pandemic-related enrollment declines, the number of licensed providers remained relatively stable, thanks in part to timely federal relief funds and DECAL’s efforts to quickly distribute resources. The study also estimates that parent earnings supported by the availability of early care and education reached approximately $36.5 billion in 2021, underscoring the industry’s critical role in enabling workforce participation. This phase of the study offers a detailed snapshot of the industry’s economic reach during a pivotal year and serves as a foundation for future reports.

Economic Impact of the Child Care Industry, 2019 to 2020

DECAL commissioned researchers from the University of Georgia and Georgia State University to revisit their previous study of the importance of the early care and education industry to Georgia’s economy in light of the COVID-19 pandemic. The initial report of the current study attempts to quantify the impact of the pandemic by comparing the industry in 2020 versus 2019 using a variety of metrics. The analyses in this report show that state and federal financial funding, as well as policy decisions by DECAL, were essential to supporting Georgia’s ECE industry. Future reports will examine the economic impact of the industry coming out of the pandemic.

Economic Impact Report 2016

In 2014, DECAL commissioned researchers from the University of Georgia and Georgia State University to conduct a new study of the importance of the early care and education industry to Georgia’s economy. The full report, the executive summary, and a policy forum presentation are posted below.

Economic Impact Report 2008

DECAL first engaged researchers from the University of Georgia and Georgia State University in 2006 to study the importance of the early care and education industry to Georgia’s economy. An economic impact study report, Economic Impact of the Early Care and Education Industry in Georgia, was released in August of 2008. The executive summary, full report, policy briefs related to the findings, and a presentation on the study can be found below.