Barbados ‘needs childcare investment’

Two Barbadian economists are making a case for more investment in universal childcare in Barbados, arguing that such a move would have positive spin-off effects for the economy and society.

This is based on research which Dr Mahalia Jackman and Dr Simon Naitram conducted during the COVID-19 pandemic in 2021 and recently released by UN Women in the final report, Making A Case For Investment In Universal Childcare In Barbados.

Jackman, who is now head of the department of economics at the University of the West Indies, Cave Hill Campus, and Naitram, an economist at the International Monetary Fund, believe that, based on their research, universal childcare in Barbados hinges on public investment.

They have made a number of recommendations for consideration, including a moderate increase in the price of public childcare services as this increases the Government’s ability to invest in childcare; regulatory or incentive-based approaches to improve the quality of private childcare, particularly if the Government chooses to subsidise private childcare; and the provision of incentives for employer supported childcare.

The study, which is edited by consultant Dr Robin Harr, was conducted with funding from UN Women and the Joint SDG Fund for the purpose of contributing to the policy debate on public investment in universal childcare in Barbados.

Jackman and Naitram found that childcare in Barbados faced a challenge where all 15 Government childcare centres operated at full capacity with other children on a waitlist.

Meanwhile, private childcare centres operate well below full capacity, but the cost of private childcare in Barbados is prohibitively high, the researchers said.

While the report noted that the price of public childcare is $20 per week, it said that “the price of private childcare for households in the lowest income quintile is equal to nearly 30 per cent of their gross income”.

Waitlists

“Focus group discussions with parents and guardians, including those on waitlists, revealed that the price of the service was the leading factor in their choice of public childcare. Current and past users of childcare centres consider

public childcare centres to be of high quality,” the report states.

“All focus group participants agreed that there was a need for more public childcare centres, as private childcare is unaffordable for many.

“In terms of funding childcare services, most users were willing to pay more than the current fee at public childcare institutions (at least 75 per cent more), but well below the per-user operating costs. This would suggest that universal childcare in Barbados hinges on public investment,” it added.

Jackman and Naitram said the two main ways that Government could provide increased childcare services was via direct intervention in the childcare market by increasing the number of public childcare centres; and indirect intervention in the private childcare market.

While noting that their analysis was constrained by data availability, the economists concluded that “any public investment in childcare will have a positive net benefit to society”.

Jackman and Naitram’s analysis “also suggests that there will likely be spillover effects on gender equality and poverty”.

“In other words, increased access to affordable childcare is likely to reduce the unpaid childcare burden on women and increase their employment prospects, which may reduce the earning gap between men and women,” they said.

“Increases in women’s income earning opportunities are likely to translate into higher standards of living and reduction in poverty.”

Regarding the recommendation to consider a moderate increase in the price of public childcare services, the authors said: “An increase in the price would reduce the long-term net fiscal cost to the Government; however, there would be a small subset of parents who would not be able to afford a price increase. Thus, consideration could be given to a progressive fee structure.” (SC)

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