Responding to an Increased Minimum Wage: A Mixed Methods Study of Child Care Businesses during the Implementation of Seattle's Minimum Wage Ordinance.

Abstract

Low wages are a persistent feature of child care jobs and affect the quality of children's care. In this article, we examine how Seattle's $15 minimum wage affects the local child care sector using three datasets: (1) state administrative records on approximately 200 Seattle-based child care businesses; (2) a longitudinal employer survey of 41 child care centers; and (3) in-depth interviews of 15 Seattle child care center directors. Findings suggest that the increase to $15/hour affects the majority of child care businesses. Providers' most commonly responded to higher labor costs by raising tuition and reducing staff hours or headcount-strategies that may negatively impact low-income families and staff. While raising wages may help some child care employees, considering the full range of effects of this policy underscores the need for a systems approach to supporting the child care sector as a whole.