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Childcare is not just a personal or family issue; it is a global economic challenge that disproportionately affects women and low-income countries. Around the world, women take on most of the unpaid care work, limiting their opportunities to engage in paid employment and public life. This disproportionate impact is particularly pronounced when they become mothers. Defined as the "motherhood penalty," research shows that across 134countries, on average 24% of women leave the labor force within the first year after having a child. The impact is long-term: after ten years, 15% of women are still absent. And the phenomenon is global – the motherhood penalty accounts for 80% of the gap in labor-force participation between men and women in high-income countries. (The Economist, 2024).
The lack of affordable, quality childcare services perpetuates this cycle. Globally, over 40% of children – nearly 350 million – below primary-school age lack access to adequate childcare, disproportionately affecting families in lower-income countries (The World Bank, 2021). Without reliable childcare, women are forced to leave the workforce or work fewer hours, which not only diminishes household income but also limits the broader economy. The International Labour Organization (ILO) reports that 606 million women of working age are excluded from the labor market due to unpaid care work, compared to just 41 million men.
However, investing in childcare offers a powerful opportunity to address these inequities and drive long-term benefits for communities and economies. Studies show that countries implementing childcare laws see a rise in female labor force participation, contributing to economic growth and societal well-being. In fact, research suggests that closing gender gaps in employment could add trillions of dollars to global GDP.
Investing in childcare is not just a solution to these challenges – it has the potential to create what is known as a "triple dividend." This refers to the three distinct and powerful ways that childcare investments yield economic and social benefits:
Access to affordable, high-quality childcare services allows women to redistribute their time from unpaid care work to paid employment, and increases their ability to stay in the workforce, driving increased productivity for women and businesses. It also gives women the time and opportunity to pursue positive activities for their own and their family’s physical and mental wellbeing.
When women can engage fully in the labor market, it enhances their economic security and autonomy, positively impacting a country’s overall economy.Studies show that increasing access to childcare can raise female labor force participation by 10–20 percentage points (J-PAL, 2023). But his requires that policymakers invest in care that works for women’s lives. Childcare services need to be tailored to fit the realities of women's employment with reasonable hours, quality standards, culturally relevant care, and accessible locations.When childcare is designed to help women take full advantage of available job opportunities and the cultural context, it can make a sustained difference in boosting female labor force participation (World Bank, 2023).
More broadly, increasing women’s participation in the workforce results in a more diverse and productive economy. When women have equal access to employment opportunities, businesses can draw from a larger pool of talent and skills, driving innovation and growth.
Childcare itself generates employment opportunities, particularly for women. Investing in a formal childcare sector can generate decent jobs, improve working conditions, and ensure that care workers are properly compensated and recognized for their contributions (ILO, 2018).
These jobs are not only critical for supporting families but are also essential for building an inclusive economy. The ILO found that investing in the care sector could create millions of jobs globally, benefiting both those who receive care and those who provide it (ILO, 2022). However, the current childcare workforce is overwhelmingly composed of women, and remains one of thelowest-paid sectors globally, particularly in the U.S. This makes it difficult to attract, retain, and advance care workers, leaving many in low-paid, unstable positions (Center for American Progress, 2022).
To create meaningful and decent work for care providers, particularly women from low-income backgrounds, we need significant investment and workforce development. While we're still learning how to design affordable, accessible childcare that benefits both providers and families, it is clear that investing in this sector could help close the gender pay gap and improve financial security for care workers. In fact, research from the U.S. shows that reducing childcare costs by just 10% could lead to a significant increase in maternal employment, ranging from 0.25% to 11% (Center for American Progress,2022). With political will and scaled investment, affordable childcare that pays workers fairly would be a win for care workers, mothers, and the economy as a whole.
Access to quality childcare has multi-generational impacts and long-lasting developmental benefits for children. Research shows that access to early childhood care and education improves children’s cognitive, social, and emotional development, particularly for girls from low-income countries(Center for Global Development, 2024). This lays a strong foundation for future learning and development, ultimately leading to better health, education, and labor market outcomes later in life (World Bank, 2023).
Quality is central to seeing the benefits for children (Behbehani, Kowalski et al, 2024). But quality care requires investments in care infrastructure – things like provider training, workforce supports, and safe and nurturing environments – to see sustained benefits (Lombardi, McCoy et al,2023). Providing care that is high enough quality to see positive impacts on children, while remaining affordable and accessible, will require strategic, coordinated, and innovative investments from policymakers and private sector partners.With those investments in policy, practice, and research, we can unlock a child’s potential with quality care driving long-term impacts for families, women, and economies.
Investing in childcare yields long-term economic benefits.According to the ILO, closing childcare policy gaps could lead to a significant boost in global GDP – potentially increasing it by an average of $3.8 for every$1 invested by 2035. This investment could also narrow the global gender earnings gap, reducing it from 20% in 2019 to 8% by 2035. In addition, care investments could raise women’s employment levels to an average of 56.5%, up from 46.2% in 2019, and create approximately 300 million jobs globally by 2035, with 96 million of these jobs directly in the childcare sector (ILO, 2021).
Investing in childcare is ultimately an investment – and a smart one at that – in the future. By removing the barriers that prevent women from fully participating in the workforce, countries can unlock vast potential for economic growth, community health, and social progress. With its "triple dividend," childcare is one of the most impactful investments a society can make.
Anna Abelson, an engagement manager with the Gender Equality Team at GHV, supports the Women’s Economic Empowerment team in the Gender Equality Division at the Bill & Melinda Gates Foundation. Bringing 15 years working in women’s rights, gender violence, reproductive justice, economic empowerment, and health equity to her role – she prioritizes centering women as experts in their own lives.
