Minimum Quality Regulations and the Demand for Child Care Labor

Minimum quality regulations are often justified in the child care market because of presence information frictions between parents and providers. However, can also have unintended consequences for quantity services provided. In this paper, we merge new data on states' maximum classroom group sizes child-to-staff ratios with universe online job postings to study impact demand characteristics labor. Our identification strategy exploits unprecedented variation regulatory reform during COVID-19 pandemic, relying changes both within states over time across children's age groups. We find robust evidence that these reduce number encourage providers substitute away from higher-skilled postings, thereby increasing positions out-of-compliance state law. Furthermore, show adversely affect mothers' labor force participation. sum, results imply may labor, while simultaneously altering composition workforce.