Developing a Child Care-Inclusive Poverty Measure

Child care costs have become one of the fastest-growing household expenses, yet the Supplemental Poverty Measure (SPM) does not treat them as a basic need. This paper from the U.S. Census Bureau explores a new Child Care-Inclusive Poverty Measure (CCIPM) that accounts for both paid and unpaid care, as well as public investment in child care. Using national data, the study shows that including child care as a basic need raises poverty thresholds and results in higher poverty rates for families with young children. The findings highlight how central child care has become in shaping economic well-being and poverty in the U.S.