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Daycare is the provision of care for a child through either a daycare center (nursery) or family-run, home daycare. Daycare differs from individual childcare by babysitters or nannies in that providers care for several children at one time. Daycare is typically used by working parents to care for children below the age of 5; however, many daycare facilities also offer before- and after-school care.

Historic Background

Daycare emerged in the late 19th and early 20th centuries in Europe and the United States as a reflection of a variety of social and economic circumstances, including the industrial revolution and immigration of families. In the United States, nurseries and kindergartens were established to serve disadvantaged women, particularly widows and working women. During World War II, the first and only federal legislation that provided broad funding and support for childcare in the United States was the Lanham Act of 1941, which provided federal grant funding to states in order to create childcare facilities for women workers as they replaced men during the war. Federal funding was discontinued just weeks after the war.

The Need for Daycare

Whether by choice or economic necessity, the increased number of mothers in the labor force highlights the importance of childcare. According to the U.S. Bureau of Labor Statistics, the participation of women with children under age 6 in the civilian U.S. labor force increased from 39 percent in 1975 to 63 percent in 2006. Similarly, the Organisation for Economic Co-operation and Development (OECD) reports that labor force participation rates of mothers with children under 6 years of age across selected countries in 2002 include Australia, 45 percent; Denmark, 74 percent; France, 58 percent; Germany, 52 percent; Italy, 46 percent; Spain, 43 percent; and the United Kingdom, 55 percent.

The National Association of Child Care Resource and Referral Agencies (NACCRRA) indicates that nearly 75 percent of infants and toddlers of working mothers are cared for by someone outside of their immediate family. The use of daycare typically depends on the work status of the mother, but household income and education influence the age at which families place their children in care. According to the National Institute of Child Health and Human Development, children are more likely to be placed in daycare at an earlier age when the family is more dependent on the mother's income. In contrast, a low-income family's children who have not entered daycare by their first birthday are more likely to live in poverty and have mothers with less education.

Martha Davis and Roslyn Powell indicate the need for childcare has also been recognized globally through the International Convention on the Rights of the Child (CRC), adopted by the United Nations (UN) General Assembly in 1989. Article 18 of the CRC asserts that states have a duty to assist working parents in meeting the needs of childcare services. The CRC has been ratified by 191 countries—Somalia and the United States are the only UN members that have not ratified the CRC.

Daycare Centers and Home Daycare

Daycare center providers include privately owned organizations, although some universities and churches also sponsor daycare programs. Smaller, private daycare centers tend to operate out of a single location; however, in recent years, publicly traded corporate daycare centers have emerged. For example, ABC Learning is listed on the stock exchange and has centers in Asia, Australia, the United Kingdom, and the United States.

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