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12.16.2022

Can Child Care Be a Big Business? Private Equity Thinks So.

The New York Times
  • Dana Goldstein

Some high-end chains are surprisingly profitable, and they are trying to shape child care policy in Washington.

The prices can rival college tuition: Bright Horizons charges up to $44,000 a year for child care in Seattle; at KinderCare in Manhattan, it is up to $40,000.

And the services can be attentive. Parents often receive hourly updates: the exact time a baby dirtied a diaper, the number of raspberries a toddler ate at snack time, photos of 3-year-olds at the playground.

Millions of American families are coping with a child care shortage brought on by the coronavirus pandemic. But one end of the business is thriving: national chains, some charging silver-spoon prices.

That split reality is another marker of how income inequality shapes access to basic necessities like child care, and how it has become harder for lower- and middle-income parents, usually women, to get back into the work force after pandemic disruptions.

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