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...significant contributions the economic growth the state (Traill & Wohl, 2004; Florida's Children Forum, 2003; and Snead, 2004). This article reports the results of a recent study conducted by the Methodist LeBonheur Center for Healthcare Economics at The University of Memphis. It focuses on the economic impact of the child care industry in Shelby County, Tennessee, and addresses the following specific questions:
* How large is the child care industry as measured by the number of providers, types of providers, and enrollment?
* How significant is the child care industry to the economy of Shelby County, Tennessee?
* How large is the economic impact of the child care industry on the local economy?
* How significant is the incremental impact of Federal and State subsidies received by eligible families?
The child care services analyzed for economic impact in Shelby County include all child care providers licensed by the State of Tennessee Department of Human Services, whether they were subsidized or not. Additionally, this article includes the impact of all child care providers registered with the Tennessee Department of Education, as well as the economic impact of unregulated child care providers that received State subsidies. However, this study excludes the economic impact of unsubsidized enrollments at unregulated providers of child care services in Shelby County for which no reliable data were available. In addition, the social value and long-term economic benefits of early education provided in many of the child care centers are also beyond the scope of this study.
Defining the Child Care Industry in Shelby County
Tennessee law defines "child care" as the provision of supervision, protection, and, at a minimum, the basic needs of at least five children, who are not related to the primary care givers, for three or more hours a day, but less than...
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