Childcare over the Business Cycle

We estimate the impact of macroeconomic conditions on childcare market. find that industry is substantially more exposed to business cycle than other low-wage industries and responds strongly negative shocks positive ones. Indeed, employment requires time recover rest economy. Although reduction in supply may pose difficulties for parents, we evidence center quality countercyclical. When unemployment rates are higher, workers have average higher levels education experience, turnover lower, consumer reviews Yelp higher.