SOCIAL PROTECTION & JOBS DISCUSSION PAPER No. 2213 | NOVEMBER 2022 Affordable childcare: A needs assessment of low-income mothers and childcare providers in urban Bangladesh Fahmina Rahman, Anmol Kamra © 2022 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: +1 (202) 473 1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. RIGHTS AND PERMISSIONS The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: +1 (202) 522 2625; e-mail: pubrights@worldbank.org. Abstract retro geometric background: © iStock.com/marigold_88 Project 41595 Affordable childcare: A needs assessment of low-income mothers and childcare providers in urban Bangladesh Fahmina Rahman, Anmol Kamra1 Abstract: Investments in childcare can generate immense economic and social benefits through increased female labor force participation and improved child development outcomes. However, high quality childcare options in Bangladesh are limited and available options are unaffordable for the urban poor. This paper examines the needs, preferences, and practices pertaining to childcare among parents and care providers for low-income households in urban Bangladesh. On the demand side, this paper finds that rapid urbanization along with a decrease in multigenerational households are increasing the demand for childcare services. Perceptions of child safety and the potential for child development are the two main factors driving the choice of care provider. However, knowledge of childcare best practices is limited among the urban poor, resulting in risky childcare practices at home. On the supply side, there is a severe gap in care provision, limiting access for the urban poor. The lack of sustainable financing is a major challenge for affordable care provision in Bangladesh. The absence of a regulatory framework and minimum standards for childcare has led to significant variations in the quality of care. JEL codes: J13, J16, J24 Keywords: Childcare; Female labor force participation; Urban; Poverty The Social Protection and Jobs team wishes to recognize the generous award of a grant from the World Bank’s Rapid Social Response Adaptive and Dynamic Social Protection (RSR-ADSP) Umbrella Trust Fund Program, which is supported by the Russian Federation, United Kingdom, Norway, Sweden, Australia, Denmark, and the Bill and Melinda Gates Foundation without which this work would not have been possible. 1 Fahmina Rahman, Social Protection Specialist, World Bank Group (frahman1@worldbank.org) ; Anmol Kamra, Consultant, World Bank Group (akamra@worldbank.org) i Contents Overview ....................................................................................................................................................... 1 1. The case for investing in childcare ........................................................................................................ 5 2. The changing landscape of childcare in Bangladesh............................................................................. 8 2.1 The Child Daycare Center Bill will establish a regulatory framework for formal childcare providers 8 2.2 Demand for childcare is increasing with societal shifts, particularly in urban areas........................ 10 2.3 Existing quality childcare options are skewed to the rich, despite stronger need among the urban poor ......................................................................................................................................................... 11 3. The demand for affordable childcare: Key findings ................................................................................ 14 3.1 Mothers overwhelmingly rely on immediate and extended family for childcare. ........................... 14 3.2 Multi-generational households are on the decline in urban Bangladesh, with consequences for female employment................................................................................................................................ 14 3.3 Childbirth and subsequent care responsibilities have disproportional effect on women in the informal sector ........................................................................................................................................ 18 3.4 Formal employment for low-income women does not include child-friendly provisions. .............. 21 3.5 Care decisions are primarily driven by perceptions of safety and potential for child development 22 3.6 Lack of information on care options limits the choices that mothers make .................................... 25 4. The supply of affordable childcare: Key findings .................................................................................... 27 4.1 Different providers cater to different market segments of the urban poor .................................... 27 4.2 Large financing gaps limit providers’ ability to deliver quality childcare to low-income families. ... 29 4.3 Care services vary significantly in the absence of minimum quality standards ............................... 32 4.3.1 Infrastructure ............................................................................................................................. 32 4.3.2 Services ...................................................................................................................................... 33 4.3.3 Quality assurance ....................................................................................................................... 35 4.4 Lack of training has led to a significant skills gap among the caregiver workforce .......................... 36 5. The impact of COVID-19 on the demand for and supply of childcare in urban Bangladesh .................. 39 6. Conclusion ............................................................................................................................................... 41 6.1 Demand for childcare services is low, but increasing steadily.......................................................... 41 6.2 The current financing mechanism for low-cost care providers is unsustainable ............................. 42 6.3 The quality of affordable childcare is typically low, and varies significantly across providers ......... 42 7. Recommendations .................................................................................................................................. 44 References .................................................................................................................................................. 45 Annex 1. Research methodology ................................................................................................................ 48 Annex 2. Matrix of sampled care providers ................................................................................................ 52 ii Acknowledgements This report was prepared by Fahmina Rahman (Social Protection Specialist) and Anmol Kamra (Consultant), under the guidance of Aline Coudouel (Lead Economist), and overall supervision of Stefano Paternostro (Practice Manager). The team is grateful for feedback from Syud Amer Ahmed (Senior Economist) and Aneeka Rahman (Senior Social Protection Economist). Md Rayhanul Islam (Consultant) provided research coordination in the field. The team is grateful to Md. Mamun-Ur-Rashid and the Development Research Initiative (DRI) team for providing data collection support. The team is also grateful to all respondents- mothers and childcare providers- who provided valuable inputs to guide the analysis and recommendations in this report. The team would also like to thank the Department of Women and Children Affairs (DWA) for the collaboration on this analysis, with special thanks to Ms. Shabnam Mustari (Project Director, Daycare). This report was supported by the Early Learning Partnership and the Gender RSR. iii Overview Investments in childcare 2 can generate immense economic and social benefits through increased female labor force participation and improved child development outcomes. However, high quality childcare options in Bangladesh are limited and the available options are unaffordable for the urban poor, even as the demand for childcare rises. The recently adopted Child Daycare Centre Bill (2021) is a significant step towards comprehensively regulating the sector, providing a framework for quality assurance. However, it is critical that investments in childcare are inclusive of the poor and vulnerable, who face unique constraints in accessing services. This report aims to inform the scale-up of the sector by examining the needs, preferences, and practices pertaining to childcare among parents and care providers for low- income households in urban Bangladesh. The demand for external childcare services is increasing. Mothers currently express a strong preference for immediate or extended family for childcare support. In large part, this is driven by social norms and mothers’ own lived experiences, as well as limited options. However, family structures are changing in a rapidly urbanizing Bangladesh with fewer multi-generational households than before. This suggests that family caregivers will likely be less available in the future for many households. In households that did not have elders living with them, mothers became sole caregivers limiting their employment and productivity. Supply of quality, affordable childcare will therefore be critical to ensure mothers do not drop out of the labor force in the absence of extended family support. Highlighting child safety and child development provisions when marketing services is important to increase demand. There is a lack of information among low-income mothers about what childcare options are available outside of their family. This is partly driven by the 2 Childcare is defined as the service of care provision for children in the early years, prior to pre-primary education. In this report, this refers to the care of children aged 0-4 years old. In Bangladesh, pre-primary education is usually offered at age 5. 1 limited supply of care providers and the nascent nature of the childcare service sector in Bangladesh. However, even among mothers who are aware of such options, take-up is low. For most mothers, perceptions of child safety and the potential for child development are the two factors driving their choice of care provider. Mothers believe that children’s development potential and safety can be maximized with family caregivers, while many external providers lack adequate safety measures. In order to facilitate use of their services, it is important that care providers have clear and transparent messaging around child safety and development when marketing their services. Given the prevalence of home-based care, it is also important to inform family caregivers of childcare best practices. The first 1000 days of a child’s life are critical for building the foundation for future life success. Equipping mothers and other family caregivers with knowledge on childcare best practices can also help them adopt good practices and move away from risky childcare practices, such as relying on other children for childcare, to incorporating simple measures that can help child development. At the same time, knowledge of childcare best practices in the early years can also provide mothers with a benchmark to assess external childcare providers, both formal and informal. The lack of sustainable financing is a major challenge for affordable care provision in Bangladesh. In order to increase accessibility, some care providers offer services at little to no cost. However, this has resulted in severe gaps between revenue and the cost of operations, as well as over-dependence on external sources of funding. In addition to sustainability concerns, this has major implications on the quality of service provided. Alternative models of improving accessibility can provide solutions. Government subsidies to low-cost care providers have been used to improve affordability in Mexico and India. Government subsidies towards caregiver training can help improve the quality of care provided. At the same time, given the high cost of space in urban areas, governments can support by providing space for childcare facilities near informal workplaces (Moussié, 2020). Subsidies towards public provision of care can be better 2 targeted to those in need. Linkages with safety net programs (such as child benefit cash transfers) can also play a critical role in increasing accessibility of childcare services. The absence of a regulatory framework and minimum standards for childcare has led to significant variations in the quality of care. Due to a lack of trained and experienced caregivers, insufficient funds, and limited parent engagement, children continue to grow in suboptimal environments. Currently, the quality of care is highly variable across providers. The Child Daycare Center Bill provides an opportunity to outline minimum quality standards for the sector while keeping the regulatory framework inclusive of low-cost providers. Investing in building a skilled childcare workforce will be critical to ensuring quality. Government providers expressed their intention to provide children with a comprehensive package of care services that include early learning, health, nutrition, and social protection interventions. Therefore, stronger coordination between various government agencies will be essential to create a comprehensive set of standards for providing holistic childcare. 3 Key Recommendations: • Increase supply of care providers by incentivizing private investment in childcare • Encourage employers to partner with childcare providers for service Government, provision, and offer childcare benefits to both male and female employees childcare ACCESS • Offer flexible, and longer hours of operation that better cater to parents service working in the informal sector providers • Customize outreach strategy for urban areas, highlighting child safety and child development provisions • Provide financial support (in the form of low-cost credit or grants) to affordable care providers to meet the minimum standards under the Child Daycare Centre Bill AFFORDABILITY • Subsidize low-cost providers to bridge the gap between revenues and cost of Government operations • Provide cash assistance to poor and vulnerable households to cover child- related expenses in the early years (e.g., through child benefit programs) • Develop guidelines on minimum quality standards for all providers, including specific guidance for low-cost and informal providers Government, • Build and implement institutional mechanisms to accredit, regulate, and in monitor childcare service providers. Develop quality assurance mechanism partnership QUALITY for informal providers. with civil • Invest in building a trained childcare workforce, including developing society, relevant curricula, providing adequate and accessible training opportunities, NGOs and incentives to pursue certification • Provide clear messaging to parents on the importance of early years and key inputs required during this time. This includes inputs on health and nutrition, Government, CARE AT HOME play and stimulation, and child safety. NGOs, civil • Develop guidelines on childcare best-practices, and make them easily society accessible to low-income families. 4 1. The case for investing in childcare Quality childcare 3 is a critical instrument for increasing human capital- essential for Bangladesh to achieve its full potential. According to the World Bank’s Human Capital Index4, a child born in Bangladesh today will be only half as productive when she grows up as she could have been if her full potential was realized. This is driven by the gap in knowledge, skills, and health that children in Bangladesh face (Human Capital Index, 2020). In order to reap the benefits of its demographic dividend, Bangladesh needs to invest in its children. A core instrument for doing so is quality, affordable childcare. The early years of a child’s life profoundly affect their ability to develop skills and succeed in life. The first five years (and particularly the first 1000 days) of a child’s life are a period of rapid brain development; it is when the foundations of optimum health, growth, learning, and social- emotional wellbeing across the lifespan are established (Moussié, 2020). Research shows that nurturing care and stimulation in these early years can lead to long-term benefits such as increased school readiness, reduced school drop-out, and enhanced future earnings (Heckman et al, 2010; Pisani, Borislova and Dowd, 2018; Shafiq, Devercelli and Valerio, 2018; Gertler et. Al, 2014). The first few years are thus a critical time to invest in children’s health, nutrition, and foundational skills including non-cognitive skills such as self-efficacy, stress management and perseverance (Dercon and Sanchez, 2011; Larose et al., 2020; Wolf et al, 2020). In addition to the care received at home, quality care outside the home can provide children with these critical inputs, and alleviate some of the initial disadvantages of children born into adverse family environments (Heckman, 2005). In Bangladesh, only 23 percent of children aged 3-5 3 Childcare is defined as the service of care provision for children in the early years, prior to pre-primary education. In this report, this refers to the care of children aged 0-4 years old. In Bangladesh, pre-primary education is usually offered at age 5. 4 The Human Capital Index measures the human capital that a child born today can expect to attain when they become adults. Human capital consists of the knowledge, skills, and health that people accumulate over their life. HCI highlights the health and education outcomes that shape the productivity of the next generation of the workforce. 5 years were receiving any early childhood education or care and a fifth of the children were not reaching their development potential 5 in urban areas (UNICEF, 2019). Access to quality childcare can also contribute to greater female labor force participation. Only 36 percent of women in Bangladesh participate in the labor force. Women’s labor force participation in urban areas drops dramatically upon marriage and still further with the presence of young children –77 percent of inactive women (versus 13 percent of inactive men) report housework and care of family responsibilities as the primary reason for inactivity. One of the major constraints for this is the lack of systematic provision of public or private daycare services (Farole and Cho, 2017). Global evidence shows that increasing access to quality, affordable childcare can increase female employment, especially amongst women with young children (Sanfelice, 2018; Dang, Hiraga and Nguyen, 2019; Clark et al. 2019). In addition, investing in childcare services will create employment opportunities which will benefit female jobseekers as well. It is estimated that 43 million care providers are needed to meet the care needs of children globally (Devercelli and Beaton-Day, 2021). The Government of Bangladesh recognizes the importance of quality childcare for improved early childhood development and female employment outcomes. The country’s first Child Daycare Centre Bill has been approved in parliament, which will regulate the quality and structure of care provision in Bangladesh. This Bill will also set the stage for future investments in the childcare sector from both state and non-state actors. However, it is important that the growth of the childcare sector is inclusive, and solutions are designed for all Bangladeshis. 5 Children are considered developmentally on track if they are on track in three out of four of the domains (Literacy-Numeracy, Physical, Social-Emotional, Learning) assessed through the UNICEF Early Childhood Development Index. 6 Box 1. Study motivation and key research questions The objective of this study is to inform future policy and programs on childcare to be inclusive of the poor and vulnerable. Low-income households in urban Bangladesh face unique constraints, driven by informal employment, income variability, and weak social networks (in the case of rural- urban migrants). In order to ensure that all Bangladeshis can benefit from quality childcare, it is important to understand the existing care practices and needs of low-income families, as well as the vast majority of those who cannot access employer-provided childcare. This report examines needs, preferences, and practices pertaining to childcare among parents and care providers for low-income households in urban Bangladesh. Mothers from low-income households and care providers were surveyed and interviewed to understand the demand for and supply of childcare respectively, through the following questions: 1. Demand side research questions: • What are the existing care options available for low-income families in urban Bangladesh? • What factors motivate the choice of childcare options for low-income families in urban Bangladesh? • How much do low-income families currently pay for childcare? What is their willingness to pay? • How is the choice of childcare related with the respondent’s profile (demography, family structure, location, income, etc.)? • What are the perceived constraints/gaps in existing care options? What features of childcare are most important for low-income families? 2. Supply side research questions: • What are the existing childcare provision models available to low-income families in urban Bangladesh? What is the caregiver-child ratio, care services provided, child safety mechanisms, registration requirements and management structures in the existing options? • How do providers monitor and assure the quality-of-care services? What quality assurance and accountability structures currently exist and how are they enforced? • What are perceived constraints/gaps that the caregiver faces in providing quality care? • How do care providers finance the operating costs of care provision? • Have care providers been trained in childcare and what professional development opportunities exist for care providers? 7 This study uses a mixed methods approach to analyze the demand and supply side of childcare for the urban poor. A sample of 1200 low-income mothers in Dhaka and Chittagong were surveyed to understand the demand side of childcare. In addition, 23 care providers across different provision modalities (home based, private, NGO, employer provided, and public6) were interviewed to assess the supply side of childcare for low-income households. Due to COVID-19 related restrictions, mothers’ surveys were conducted via phone 7 while the care providers were interviewed in person. The detailed research methodology for this report can be found in Annex 1. The expansion of the childcare sector in Bangladesh needs to be grounded in a sound analysis of the needs of the users and providers of childcare. Section 1 presents the case for investing in childcare in Bangladesh. Section 2 provides an overview of the Bangladeshi childcare sector and Sections 3 and 4 describe the key demand and supply side findings from the surveys and interviews. Section 5 highlights the main conclusions of this report and section 6 discusses the recommendations on the way forward to creating an inclusive childcare sector in Bangladesh. 2. The changing landscape of childcare in Bangladesh 2.1 The Child Daycare Center Bill will establish a regulatory framework for formal childcare providers Gaps in the regulatory framework affected the quality of childcare provision in Bangladesh. Prior to the Child Daycare Center Bill (2021), formal institutional providers were required to register their organization and follow operating guidelines for private companies and NGOs, but no specific guidelines existed for the provision of childcare. As a result, the quality of childcare provision has varied across providers with limited monitoring of quality. The Bangladesh Labor 6 The team was unable to interview care providers at government childcare centers since the government childcare centers were closed due to COVID-19. The team interviewed the project director, who oversaw the provision of childcare in 85 government childcare centers to understand childcare provision in those centers. 7 Data collection protocols were adapted to phone-based surveys, and additional data quality measures were incorporated (See Annex 1 for the detailed research methodology). 8 Act of 2006 8 requires businesses with 40 or more female employees to provide onsite daycare for children under the age of six. However, compliance with the Act is very low; a recent study showed that only 23 percent of companies surveyed in Bangladesh offered some form of childcare solution to their employees (International Finance Corporation, 2019). A study of ready-made garment factories found that a significant number of daycare centers located in factories are used only during buyer visits to show the factories’ compliance with the law (Awaj Foundation, 2019). The Child Daycare Center Bill 9 will create the first comprehensive regulatory framework for the sector. The Bill formalizes institutional daycare providers with the establishment of a registration authority and mandatory registration of all institutional providers. It also provides the first framework for quality control in the sector, with standards for physical infrastructure and services provided and a corresponding inspection and monitoring system. The strong framework provided by the Bill can be operationalized by establishing a regulatory and institutional mechanism to enforce the provisions of the Bill. If implemented effectively, the Bill’s provisions are an important step towards ensuring quality of care in the growing childcare sector in Bangladesh. However, informal providers catering to low-income households remain outside the scope of the Bill. The draft Child Daycare Center Bill currently only recognizes institutional (center- based) formal providers and does not include guidance for informal providers such as home- based, individual caregivers. These providers represent an important segment of care solutions in Bangladesh that cater to low-income households, who value the affordability and flexibility of the service. Although informal providers are not regulated by the Bill, they can benefit from guidelines that consider informal service provision along with institutional providers. At the 8 Bangladesh Labour Act 2006. Available at https://betterwork.org/dev/wp-content/uploads/2017/02/2.- Bangladesh_Labor_Law_2006_Eng-1.pdf 9 The Bill was cleared by the Cabinet of Bangladesh in February 2021 and is pending parliamentary approval 9 same time, an inclusive regulatory framework can create a pathway to formalization for individual caregivers, with the potential of improving their quality of service. 2.2 Demand for childcare is increasing with societal shifts, particularly in urban areas Prevailing social norms mean that childcare responsibilities fall disproportionately on women. In low-income areas and slums in Dhaka, for instance, women’s time spent on domestic work and childcare activities is eight times greater than that of men (0.34 hours a day for men vs. 5.16 for women). Further, while 63 percent of men rely on their spouses for childcare, only about 13 percent of working women can do so (Farole and Cho, 2017). As a result, one of the major constraints to mothers’ participation in the labor force is the lack of systematic provision of childcare services, which is limited and not easily accessible to low- income households. Increasing female labor force participation has increased demand for childcare, particularly in urban centers. For women aged 15 and above, labor force participation rose from 26 percent in 2003, to 36 percent in 2019 (ILO, 2021). Bangladesh is one of the few countries in South Asia that in recent years has experienced a rapid increase in women’s employment, largely due to the growth in the readymade garment (RMG) industry and a rise in livestock rearing (Rahman and Islam, 2013). While female labor force participation is higher in rural areas (38 percent versus 31 percent), rates of paid employment (usually undertaken outside the home) are higher in urban areas (26 percent and 22 percent respectively) (Bangladesh Labor Force Survey, 2013). Better employment opportunities in cities have led families to migrate to urban centers. For instance, a study in low-income areas and slums in Dhaka found that 74 percent of residents were migrants, and 7 out of 10 migrated for work (Kotikula, Hill and Raza, 2019). Since more families in urban areas have become nuclear, they have been deprived of the care support they would have otherwise received from extended family members. This lack of a support network and higher rates of employment for women have increased the demand for childcare in urban areas. 10 The availability of affordable quality childcare and female labor force participation are closely linked. A large body of evidence suggests that affordable childcare leads to higher labor force participation (Dang, Hiraga and Nguyen, 2019; Sanfelice, 2018). At the same time, women from the poorest families may be compelled to work regardless of the availability of childcare, often opting for unsafe options (such as leaving infants in the care of older siblings) or bringing children to work. As labor force participation increases among poor women, the demand for quality childcare also increases. 2.3 Existing quality childcare options are skewed to the rich, despite stronger need among the urban poor Low-income mothers in urban centers need childcare the most, but options are limited. Urbanization is changing social and gender norms amongst the poorest families. Twice as many women with a child under 5 in Dhaka slums work outside their homes, compared to women in the rest of the city (Hamadani et al. 2010). However, these families have limited knowledge of and access to affordable and quality childcare options and 65% of children in slums are taken to work by mothers or left with older siblings, neighbors, or friends (Rahman et al. 2012). In part, this is because provision of childcare in low-income areas and slums is challenging: the price and availability of land for well-equipped childcare centers is high and it is difficult to establish sustainable revenue streams to cover these costs; the nature of women’s work is different in urban areas compared with rural areas, with longer working hours and considerable travel to garment factories and other workplaces; and communities are heterogeneous and transient (Das et al. 2018). Therefore, provision of childcare in these areas requires financing models and inclusive delivery mechanisms that account for the specific needs of the urban poor. A range of childcare providers exist in urban Bangladesh. Childcare providers cater to children of all ages ranging from very young children (0-3 years old) to children who are enrolled in primary school (up to 12 years old). The childcare services are primarily delivered in two types of settings: (1) home-based care, often provided by individual care providers, delivered at the 11 caretaker’s home or the family’s residence; and (2) institutional daycare options, which include employer-provided onsite centers, privately-run centers, government centers and pre-primary schools and centers managed by NGOs. Table 1 lists the different childcare options available for families in urban Bangladesh. Table 1. Main childcare service providers in urban Bangladesh Childcare Services Cost Formality Status Caregiver Training Accessibility for poor households Private daycare center High, Medium Formal, Informal Limited training in Not accessible (cost- formal centers prohibitive) Personal at-home High Informal No training Not accessible (cost- caregiver/nanny prohibitive) Employer provided Medium, Low Formal No training Low to limited childcare accessibility to formally employed Not accessible to informally employed NGO daycare center Low Formal Limited training Limited accessibility Public daycare center Low Formal No training Limited accessibility Individual caregiver Low Informal No training High accessibility Both formal and informal providers predominantly cater to the higher end of the market. Registered private daycare centers are the most expensive option, with significant variation in the quality of service provided. Some private centers follow a structured curriculum, based on international best practices and child development guidelines, along with relevant training for 12 staff. These are on the higher end of the cost spectrum but in the absence of official standards, quality can vary. Families also hire personal, at-home caregivers who live with the family and provide ongoing childcare. Despite being on the higher end of cost, at-home caregivers receive no formal training or accreditation, and have limited educational qualifications. Their employment structure is informal, and quality of care can vary. The quality of employer provided childcare varies significantly and perpetuates inequities. Some employers offer subsidized on-site childcare as an employee benefit, but investment in these childcare centers vary significantly based on the type and size of the employer. Some employers in the service industry have introduced on-site daycares where, similar to private centers, quality standards and early learning curriculum have been adopted based on international best practices. Employees are usually charged a user fee which is subsidized by the company. A number of employers in the manufacturing industry also provide on-site daycare, but investment in these centers are lower and vary significantly depending on their size. For example, some large manufacturing firms have partnered with NGO providers 10 to set- up and operate on-site daycare facilities for factory workers. The quality in these centers are based on the NGOs guidelines. In comparison, smaller and often informal firms, although required by law to provide childcare, invests significantly less, with major consequences on the quality of care provided. Although there is more variety in childcare options for the poor, they are limited in supply with low accessibility. Among formal childcare options that are available to the urban poor, there are private centers, NGO run daycares, and government daycare centers. Private daycare centers are the most expensive amongst the options available for low-income households. Some private daycare centers are embedded in pre-primary and primary schools and provide children with care services after-school hours. NGOs provide childcare services to low-income 10 NGO providers include Phulki, Save the Children, Plan International, and Kormojibi Nari. 13 families, alongside a package of social services 11, for free or for a minimal user fee. These centers cover their operating costs through voluntary contributions from children’s parents, user fees and philanthropic or bilateral/multilateral donor contributions. Government daycare centers, managed by the Ministry of Women and Children Affairs, provide care services to children across different socio-economic levels. These centers charge lower user fees from low- income households and provide children with early learning, feeding, and cleaning services. However, access to these affordable childcare options are constrained by a number of factors, including limited supply, distance from household/workplace, and lack of knowledge on existing options. Individual care providers also cater to low-income households and fill a critical gap by primarily catering to very young children below the age of 2. They are informal providers, often with no education or training, who live in the community and provide limited care services such as cleaning and feeding to very young children (0-2 years) in the providers’ home in exchange for monthly fees. Since these providers do not have fixed hours of operation, they also cater to children whose parents are self-or informally employed and work long or irregular hours. Although there is more variety in care providers that cater to the poor, they are limited in supply and are widely perceived to provide low quality of care (see Sections 3 and 4 for more details). As a result, the majority of the urban poor are unable to access quality affordable childcare. 3. The demand for affordable childcare: Key findings 3.1 Mothers overwhelmingly rely on immediate and extended family for childcare. Mothers primarily rely on extended family for childcare12. Among mothers who are employed full time, only 2 percent accessed employer provided care while 1 percent used private care 11 Some of the social services include vocational training, adult literacy classes, savings and lending groups and healthcare 12 The findings are based on a survey of 1200 mothers from low-income households in Dhaka and Chittagong. The sample includes mothers who are employed as well as those who are not. 14 compared to zero usage among self-employed and unemployed mothers. This implies that both access to and take-up of non-family childcare options remain limited for low-income mothers, even when they are employed full time. However, full time employed mothers are significantly less likely to be the main caregiver for their child- only 2 percent of full time employed mothers were sole caregivers, compared to 36 percent of unemployed mothers. Figure 1. Mothers primarily rely on extended family for childcare Care choices by mothers’ employment status 80% 70% 60% 50% 40% 30% 20% 10% 0% Overall Employed full time Employed part time Self-employed (home Unemployed based) Self Older child Family (HH) Relative (outside HH) Community Employer Private Source: Mothers’ survey (quantitative) Care decisions vary depending on the role that family elders play in decision making and child expenses. For the vast majority of families (80 percent), care decisions are taken jointly by the child’s parents. In this case, 44 percent of parents relied on other adults in the household for childcare. However, in cases where family elders are involved in decision making- 13 percent of all respondents, half of who also bear some of the child’s expenses- the choice of care is heavily skewed towards the family. 93 percent of families where elders are involved in decision making chose other adults in the household for childcare. Although social norms around childcare 15 continue to play a large role in decision making, this implies that families may be more open to care options outside the household now compared to previous generations. For paid care options, the cost of accessing care from other adults in the household is one of the highest. 94 percent of respondents used unpaid care options. However, among those who paid for care, either in cash or in kind, the cost of family-based care was significant. Although private care options were the most expensive- Tk. 2500 per month, on average- mothers reported paying Tk 2100, on average, to extended family members who provided childcare 13. This is likely an underestimate of the true cost, since the household head (the parents, in 82 percent of cases), will also have to bear the lodging, food and miscellaneous expenses tied to an elder living in the house. Employer provided care is the lowest cost option, at Tk. 667 on average per month 14. The cost of external childcare can be unaffordable for many, given that the monthly minimum wage for garment workers, where the majority of employed respondents worked, is BDT 8000 (US$ 94). Figure 2. Cost of paid family care is significant Average cost of paid childcare, in BDT per month Private 2500 Employer 667 Community 1856 Relative (outside HH) 1453 Family (HH) 2100 Older child 0 Source: Mothers’ survey (quantitative) 13 Although this payment may not be explicitly for providing childcare services, some mothers reported giving money to the family member, likely to support their expenses. 14 While most employers provide care services for free, the additional cost might be a result of the cost of transportation or providing children with meals in the employer daycare centers. 16 3.2 Multi-generational households are on the decline in urban Bangladesh, with consequences for female employment. Household composition has been changing in urban Bangladesh over the last decade. The average size of households in urban areas decreased from 5.13 in 2000 to 3.93 in 2016, according to the Bangladesh Household Income and Expenditure Survey (HIES 2016). Only 38 percent of mothers surveyed had elders living in the same household. At the same time, Bangladesh has been rapidly urbanizing, driven by large-scale job creation in Dhaka (Farole and Cho, 2017). Around 3.5 percent of the population migrate internally every year, driven by natural disasters and employment opportunities in the cities (UNICEF, 2015). For many households, this translates to a shift towards nuclear families without immediate access to the extended family for support. Given this trend, the current reliance on grandparents for childcare will continue to decline in urban Bangladesh. Low-income households, many of whom are economic migrants, will be particularly impacted. Figure 3. Care choices vary depending on availability of elders in the household Care choice of all mothers, by presence of elder in HH Care choice of employed mothers, by presence of elder in HH Self Self Private Private Employer Employer Community Community Relative (outside HH) Relative (outside HH) Family (HH) Family (HH) Older child Older child 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% Elders part of HH Elders not part of HH Elders part of HH Elders not part of HH Source: Mothers’ survey (quantitative) 17 Mothers play a larger role in childcare when extended family are not part of the household. For households that do not include grandparents, 35 percent of mothers were the sole caregivers. For employed mothers, the reliance shifted to other family members- 36 percent relied on older children and 41 percent relied on relatives living nearby. These choices further demonstrate the strong preference for family caregivers. At the same time, in the absence of extended family members, it shows that mothers become sole caregivers, with major consequences on their labor force participation. Two factors drive this decision process. First, social norms in Bangladesh focus on the family, and in particular the mother for care responsibilities. On average, married women spend 22 hours per week on care work compared to 6 hours per week for married men. The presence of elderly in the household is associated with higher female labor force participation, since it frees up women’s time from childcare responsibilities (Solotaroff, Kotikula et al, 2019). The absence of extended family results in a fallback to traditional divisions of care responsibilities. Second, the limited availability of alternative care providers and mothers’ lack of familiarity with such options results in fewer women using them. In Bangladesh, the social perception of institutional childcare and mothers’ familiarity with them directly influence their willingness to use this type of care (Zhang et al, 2020). Given the nascent nature of the sector, mothers do not have the familiarity or trust in external care providers that would enable use. Instead, dropping out of the labor force to become caregivers tends to be the most feasible option for many mothers. 3.3 Childbirth and subsequent care responsibilities have disproportional effect on women in the informal sector The majority of employed low-income women in urban Bangladesh work in the informal 15 sector. 48 percent of all wage employed women in urban areas work in the informal sector 15 Employment in the informal sector here is defined as employment without a written contract. 18 (Farole and Cho, 2017). A recent study 16 on low-income households in Dhaka found that the majority of low-income employed women- 59 percent- were working in the informal sector (Kotikula et al, 2019). Among mothers surveyed for this study, 30 percent are employed, out of whom 75 percent do not have permanent contracts. Women in the informal sector face multiple challenges with staying employed after childbirth. Workers in the informal sector operate in a regulatory gray area and often lack access to employee benefits. There are no pensions, no health or unemployment insurance schemes, and none of the protections provided to formal workers. In Bangladesh, women in the informal sector do not have access to maternity leave, nursing breaks or a flexible work schedule (World Bank, 2019). As a result, the vast majority of women in the informal sector are forced to leave their jobs for childbirth. 73 percent of unemployed respondents who were employed before cited childbirth and subsequent childcare responsibilities as the reason for their unemployment. Figure 4. Childbirth and childcare are the primary Figure 5. Mothers view presence of elders in reasons women drop out of the labor force household as key support needed to return to work Reasons for leaving labor force Support needed to return to labor force Don't want to work outside 4% I lost that job 6% Husband's permission 2% Physically unfit to work 4% Other 6% To take care of household 24% Proper transportation 2% Husband didn’t allow 18% Workplace close to home 26% Schedule problem 4% Maid 16% To take care of baby 73% Extended family in HH 60% To give birth 73% Daycare 7% Source: Mothers’ survey (quantitative) 16 The DIGNITY survey is representative of low-income areas and slums of the Dhaka City Corporations (North and South), and an additional low-income site from the Greater Dhaka Statistical Metropolitan Area (SMA). 19 Reentry into the labor force poses additional constraints after childbirth. Although childbirth and lack of maternity leave prompts many women to leave their jobs, multiple factors constrain their reentry into the labor market after childbirth. The time taken to recover from childbirth can vary based on the quality of healthcare accessed. Longer time out of the labor force can negatively affect work prospects for women (Aisenbrey, Silke, et al., 2009). Once out of the labor force, women take on more household along with childcare responsibilities. In the absence of extended family or other care options, transitioning out of those responsibilities can also be challenging. 24 percent of respondents who were previously employed cited other household responsibilities as the reason for remaining out of the labor force. 18 percent also cited familial pressure to stay at home. At the same time, 65 percent of respondents who are currently not working are keen to reenter the labor force. 60 percent of them mentioned that having elders live in the house would enable them to return to the workplace. Self-employed mothers face major productivity challenges after childbirth. Many women prefer self-employment over wage-employment due to the perception that it would allow for easier navigation of social norms, childcare, and mobility constraints (Rahman 2019). Their businesses are usually informal microenterprises, managed directly from the home. However, for mothers, this poses a challenge on productivity since childcare responsibilities constrain mothers’ ability to spend sufficient time to grow their enterprise. Self-employed respondents spent 3 hours per day, on average, on their business compared to 7 hours per day spent on childcare. This is comparable to unemployed mothers, who spent 8 hours per day, on average, on childcare. Existing care options do not adequately cater to mothers working in the informal sector. Since a large majority of mothers in low-income households are employed informally, they are required to work long or irregular hours. Most care providers cannot adequately meet these demands since they only provide care services at the same time as those who work in the 20 formal sector. Despite the availability of care options, mothers in low-income households are often unable to avail those services. 3.4 Formal employment for low-income women does not include child-friendly provisions. Bangladeshi law requires employer-provided childcare, but compliance is low. The Bangladesh Labour Act of 2006 requires establishments with 40 or more female workers to provide childcare facilities. However, a survey of 306 companies in Bangladesh found that only 23 percent offered some form of childcare solution to their employees, even though 41 percent of them were moderately familiar with the requirements of the Act (International Finance Corporation, 2019). Only 20 percent of employed mothers cited childcare as one of their employment benefits17. At the same time, only 36 percent of employed mothers could bring their child to the workplace. Child benefits are significantly limited for fathers. There are no legal requirements for paternity leave, and only 5 percent of fathers had access to childcare benefits, while 11 percent could bring their child to the workplace. Studies show that child benefits for fathers, such as paternity leave, can have a significant and long-lasting effect on fathers’ involvement in childcare and housework, while improving maternal labor supply (Tamm, 2018). Evidence also suggests that paternal engagement and stimulation plays a critical role in child development in low- and middle-income countries (Jeong et al, 2016).In Bangladesh, the lack of child benefits for fathers perpetuates the gendered norms around childcare and further constrains women’s labor force participation. 17 This number is slightly higher for mothers employed in the garments industry- 28 percent. 21 3.5 Care decisions are primarily driven by perceptions of safety and potential for child development Figure 6. Perceptions of trust and safety are main reasons behind care choice Reasons for choosing each childcare option 80% 70% 60% 50% 40% 30% 20% 10% 0% Overall Older child Family (HH) Relative Community Employer Private Self (outside HH) Close to home Less costly Match my work schedule Good for child's development Trustworthy No other option Source: Mothers’ survey (quantitative) Trust and perceptions of safety drive mothers’ choice of childcare. Among mothers who relied on family members or community providers for childcare, the key reason highlighted was the person’s trustworthiness. 61 percent of mothers who relied on adult family members within and outside of the household mentioned trust as a key factor. On the other hand, 67 percent of mothers who chose private care options cited the benefits to child development as the primary reason. 50 percent of those who chose employer provided care cited alignment with their work schedule as the main reason. 22 Figure 7. Flexibility was more central to care choice than cost A. Role of cost in care choice B. Role of flexibility in care choice 12% 16% 8% 49% 11% 31% 62% 10% Not at all To a very small extent Not at all To a very small extent To a certain extent To a great extent To a certain extent To a great extent C. Role of family availability in care choice D. Role of recommendations in care choice 3% 1% 26% 16% 41% 22% 81% 11% Not at all To a very small extent Not at all To a very small extent To a certain extent To a great extent To a certain extent To a great extent Source: Mothers’ survey (quantitative) Flexibility of accessing care was more important than cost when choosing childcare. For the majority of respondents, cost played a minor (31 percent) to no role (49 percent) in choosing childcare. However, since most respondents were choosing among unpaid care options, this indicates that factors outside of cost savings played a greater role in decision making. Flexibility of accessing care mattered to a great extent for 62 percent of respondents, particularly those who opted for family caregivers. At the same time, 81 percent of respondents mentioned that childcare recommendations from their networks played no role in their decision. However, for mothers who chose private care options, 67 percent mentioned that referrals played a minor role. 23 Figure 8. Mothers view child safety as the primary Figure 9. Mothers identified over-dependence on benefit of their current care option family as a challenge with their current care option Benefits of using current care option Challenges of using current care option No benefits I can't work 5% 1% No challenges 50% Child's development or 40% learning is good Child is not comfortable 3% with care provider Child gets to spend time with family, better 66% Child development not 4% bonding adequate Disruption to older 18% Close to home or work 8% children's education Over dependence on family 22% Flexible arrangements 17% Too far from home/work 2% I feel my child is in safe 88% Lack of flexibility 2% hands Quality standards are Safety concerns 2% 14% good Quality standards not good 3% Cost is low 18% Cost is too high 9% Source: Mothers’ survey (quantitative) Although mothers are satisfied with their current choice of childcare, some challenges remain. 94 percent of respondents were satisfied with their choice of childcare. Among the benefits highlighted, 88 percent felt their child was safe, 66 percent felt their child had more time to bond with family and 40 percent felt their child’s development was positively affected. Among those who opted for private childcare, 67 percent felt that child development was a key benefit. This implies that confidence in safety measures and child development provisions are necessary conditions for mothers’ adoption of external care services. Among challenges, 22 percent of mothers felt that they were over-dependent on family for childcare. Among those who asked older children to take care of younger ones, 47 percent felt it was a disruption to the older child’s education. Although preference is strong for family caregivers, this indicates that mothers also see challenges with their current preferred options. 24 3.6 Lack of information on care options limits the choices that mothers make Most mothers are not aware of external childcare options. 65 percent of respondents did not know of any external childcare options, formal or informal. 26 percent were familiar with employer provided options, primarily in the garments industry while a very small number of respondents knew about private centers, NGO-run centers or community care providers. None of the respondents knew about government provided childcare options, even though they are geared towards low-income families. Although childcare is an underdeveloped sector in Bangladesh with a limited number of providers, this indicates that there is a lack of information on existing providers too, which can severely limit adoption. In order to facilitate use, care providers will have to market their services and highlight safety provisions for children. When asked about their ideal childcare arrangement, 58 percent of mothers highlighted safety and security, followed by 40 percent of mothers who mentioned educational and recreational facilities as key features. At the same time, 21 percent of mothers perceived that existing care options lack adequate safety and security. Given the importance that mothers place on trust, a safe environment for children, and potential for child development, it is crucial for providers to communicate and market their services along these metrics. Transparency and proper messaging will be key to building the trust required for greater use of external childcare services. 25 Figure 10. Child safety is the most important feature Figure 11. Mothers perceive that most external care to mothers for childcare options don’t have adequate safety measures Most important features in ideal care option Gaps in existing care options Don't know 17% Others 2% Food facilities 33% Don't know 34% Safety and security 58% Lack of safety and security 21% Medical facilities 22% No safe drinking water 4% Time flexibilities 5% No recreational facilities 7% Well trained and caring 26% No educational facilities 12% staff Hygiene 24% No medical facilities 10% No pickup and drop off Recreational facilities 40% 8% service Educational facilities 39% Lack of flexibility 8% Infrastructure 3% Staffs are not well trained 15% Cost 19% Low quality facilities 12% Distance from home 4% High cost for quality 16% Source: Mothers’ survey (quantitative) 26 4. The supply of affordable childcare: Key findings 4.1 Different providers cater to different market segments of the urban poor Table 2. Primary users of sampled providers 18 Private daycare NGO daycare Public daycare Employer Home-based center center center provided informal childcare providers Primary users 3-12 years old 2-6 years old Children from all 2-6 years old 0-2 years old Low- and Most children income groups Children of Low-income middle-income lived in nearby living in nearby employees households households slums location Source: Qualitative Data Most care providers cater to working parents that lack alternate care support. Across all types of providers, most caregivers provided services to children whose parents were either engaged in employment in readymade garment factories, informally employed as wage laborers and domestic helpers, or self-employed in petty trade activities. Several providers also reported only providing care services to families where both parents were employed and were unable to arrange alternate care provision for their children. Employer-provided care facilities are primarily used by female employees and cater to employees at different levels in the organization. More than half (60 percent; n=5) of the employer-run daycare centers reported that only female employees were eligible to avail onsite childcare services even though a significant proportion of employees were male. The Labor Act (2006) states that employers are only required to provide onsite daycare services to employees if an organization has at least 40 female employees with children who 18 The findings are based on key informant interviews with a sample of childcare providers referred by mothers interviewed for this study. They are affordable options accessed by low-income households in Dhaka, and include a variety of providers- home-based informal, private centers, NGO centers, government centers, and on-site employer daycare centers. 27 are 0 to 6 years old. Respondents also reported that daycare centers provided care services to children of employees at all levels in the organization, ranging from cleaners and machine operators to employees in managerial roles. Home-based informal caregivers are the primary providers of childcare to children below the age of 2. Most (90 percent; n=10) home-based informal providers reported providing care services to children in the 0 to 2 years age group while several institutional providers (60 percent; n=13) reported not providing care services to children below the age of two. Employer-provided daycare centers accepted children below the age of two, however, some reported that several parents were unwilling to enroll very young children in daycare centers with older children. In addition, home-based informal providers reported that parents preferred their services for the care needs of very young children since they require concentrated care and attention, which they might not receive in an institutional childcare facility. Despite the limited services provided by home-based informal providers, parents preferred home-based informal providers for the care needs of very young children. Home-based informal providers offer flexible schedules and low fees to parents from low- income households with irregular working hours. Given the informal nature of the relationship between the home-based informal care provider and families, some care providers (50 percent; n=10) reported charging a lower monthly fee from families belonging to low-income households. In addition, home-based informal care providers reported offering flexible schedules to families since many parents were engaged in informal jobs with irregular hours, while most institutional providers only provide care on a fixed schedule. Therefore, institutional childcare centers might not meet the care needs of children whose parents are engaged in the informal economy. Parents prefer daycare centers to be close to either their homes or workplaces. Care providers reported that all children lived close to their daycare centers. Most home-based informal providers provided services in their own homes and lived in the same neighborhood as 28 the children. In some cases, the providers and families lived in separate rented rooms in the same larger community house. Employer provided childcare facilities were available onsite and most employees lived in the same neighborhood as their workplace. Employer-arranged providers also reported that families living farther off from their workplaces can access onsite care more easily since the parents are required to commute to work and their children usually accompany them. Several NGO and private providers reported that families without access to care services mostly live in slums. Therefore, they established daycare centers in slums to reach the maximum population with an unmet care need. 4.2 Large financing gaps limit providers’ ability to deliver quality childcare to low-income families. Table 3. Financing structure of sampled affordable providers Private NGO daycare Public daycare center Employer Home-based daycare center provided informal center childcare provider Cost of Monthly Free / voluntary Monthly fees on an income Free / limited Monthly fees service fees contribution based sliding scale non-fee cost from parents Cost Fixed N/A Based on perceived N/A Varies based on variability individual income family’s income and child needs Cost 700BDT Voluntary Range from BDT 50 ($0.59) N/A Range from BDT range ($8.28) to contribution per month (poor) to BDT 250 ($2.96) to 5000BDT from parents 500 ($5.89) per month BDT 3000 ($59.16) range from BDT (non-poor). ($35.49) 20 ($0.24) to BDT 200 ($2.37) Non-poor also pay BDT 200 ($2.35) as one-time admission fees. Source of Admission Donor funding, Admission fees, monthly Employer profit Monthly fees or revenue fees, voluntary fees, government funds, with occasional in-kind monthly contributions donor funds in-kind payments fees from parents contributions collected from from NGO parents partners Source: Qualitative data 29 Providers rely on monthly fees, and external financing to provide childcare services. While some providers charge an admission fee to offset one-time costs19 for new admits, most rely on revenues from monthly fees and external financing support to cover operating costs (see Table 3 for more details). However, all providers face challenges with financing operations sustainably and maintaining quality. Some providers reported that several parents defaulted on paying admission fees. At the same time, the low monthly fees, while increasing accessibility for poor families, is widely perceived to be inadequate for quality service provision. The public daycare centers have focused on a differentiated fee structure based on parent profession, with the objective of subsidizing those with lower income. However, in the absence of an effective targeting methodology, the allocation of subsidy remains inefficient 20. Employer provider childcare is usually free or heavily subsidized, and operating costs are covered through the companies’ revenue. However, there are no legal requirements on minimum standards, or the level of investment employers make for childcare provision. As a result, the level of investment and hence, the quality of care services vary significantly across employers, with many making insufficient investments to provide quality care. Providers reported that monthly fees are insufficient to meet the operating costs of their centers. Some respondents reported reducing the quality or the number of childcare services provided due to insufficient revenues. To meet operating costs, some private providers (50 percent; n=4) relied on income from other business activities. NGO providers accepted voluntary donations from parents and institutional donors to meet their operating costs. Public daycare centers also heavily relied on donor financing to meet the gap between the cost of operations and revenue. 19 One-time costs include the cost of utensils, toys, and uniforms for new admits. 20 Currently, targeting is done on the basis of the parents’ professional designation and perceived income for those professions. However, this does not take into account the household income, or the family’s assets and poverty status. 30 NGO and government providers funded by institutional donors are concerned about sustainability. A majority of NGO providers were funded by institutional donors such as international NGOs and multilateral organizations. All care providers in donor-funded NGO daycare centers expressed concerns about the predictability of donor funds and the subsequent sustainability of their services. A third of the government daycare centers are currently funded by UNICEF. It was reported that without greater government funding and a more targeted fee structure, the centers will not be able to provide childcare services sustainably, once external funding is unavailable. “In one word, this is all about funds. If you do not have funds, then you will have problem everywhere. Without funds, we cannot give the proper service and we have stopped giving children some proper services. Still considering the budget, we try to support and cooperate with the community. Sometimes I give from my salary, but it cannot continue like this.” -Private daycare provider The current needs-based fee structure at government daycare centers does not accurately account for parent’s ability to pay. Even though the government childcare services are meant to serve individuals from all socio-economic groups, the Ministry of Women and Children Affairs has prioritized the provision of affordable childcare services to children from low-income households. Therefore, the monthly cost of care services at government daycare centers is BDT 50 and BDT 500 for children from low-income and non-low-income households, respectively. Currently, children are classified into different fee groups based on their parent’s profession and not household income. Since parent’s professions does not always accurately reflect the family’s income and their subsequent ability to pay, fees determined on this basis are not targeted. A more targeted approach and revised fee structure can lead to significantly greater cost recovery for government day care centers. Currently, the revenue generated through monthly user fees only meets 7 percent of the cost of care provision. 31 4.3 Care services vary significantly in the absence of minimum quality standards 4.3.1 Infrastructure Home-based informal caregivers provide care services in their own single-room homes, while institutional care providers operate out of multi-room facilities. Since most home-based informal providers (80 percent) cater to a small number of children 21, care is provided in a single-room facility that is used for conducting all activities such as feeding, sleeping, and playing. This space also serves as the residence of the care provider and is often rented in a larger house or residential community. Such spaces often lack adequate ventilation and child- friendly sanitation. Institutional providers, in comparison, consist of several rooms such as classrooms, separate playrooms, dining areas and offices for staff. In addition, institutional childcare facilities tend to have adequate ventilation, and child-friendly sanitation and furniture. Research shows that poorly built environments that lack appropriate lighting and ventilation can have long-lasting detrimental impacts on children’s health and development outcomes (Zuraimi et al. 2007; Ferguson et al. 2012). Figure 12. A large proportion of home-based informal providers lacked child friendly infrastructure Availability of child-friendly infrastructure Individual (N=10) 50% 30% Employer (N=5) 80% 80% Adequate ventilation Child-friendly infrastructure NGO (N=4) 50% 50% Private (N=4) 50% 50% Source: Qualitative data 21 80 percent of the home-based informal providers (n=10) reported providing care services to a maximum of only two children at a time. 32 4.3.2 Services Home-based informal providers offer limited childcare services. Most (90 percent; n=10) home-based informal providers reported providing limited care services such as bathing and feeding. home-based informal providers lack formal training in childcare, are often illiterate, and reported being overburdened with other household chores alongside childcare. Therefore, they are unable to provide children with adequate early learning and stimulation. Further, half the home-based informal providers were unable to provide children with toys and some reported that children brought their own toys. However, since most of these centers operated in the care providers' homes, they were able to provide children with commonly found household objects such as pots, pans, or spoons to be used as toys. Most NGO, employer, and privately-run daycare centers engage children in structured and play-based early learning and development opportunities. Evidence unequivocally suggests that play-based and need-specific early learning and stimulation are significant contributors to improved child development (Wolf, Aber and Behrman 2018; Ginsburg 2007). 87 percent of institutional childcare providers reported engaging children with a wide variety of play-based learning tools such as age-appropriate toys, off-site activities such as visits to the garden or zoo, and multimedia tools. Institutional providers that catered to a larger number of children were also able to group those with similar development and care needs to provide customized stimulation opportunities. On the other hand, smaller institutional providers that catered to a small number of children were unable to segregate children and provided all children with similar learning inputs regardless of their age or learning needs. 33 Figure 13. Services provided vary across providers 100 100 100 80 80 80 60 60 60 40 20 10 Private (N=5) Employer (N=5) Individual (N=10) NGO (N=5) Nutrition Services Early Learning Health Services Source: Qualitative data Employers and private daycare centers also provide nutrition services to children. Several employer-run and private daycare centers (55 percent; n=9) reported that they provide children with balanced and nutritious meals at regular intervals. Half of these care providers also reported consulting with nutritionists to develop children’s meal plans. All employer-run childcare centers also have dedicated feeding rooms onsite for employees with infants. On the other hand, parents are responsible for providing meals for children under home-based informal care providers and NGO daycares. A few home-based informal and NGO providers (15 percent; n=14) also reported discontinuing the provision of meals given insufficient funds to meet operating costs of care provision. Most providers monitor critical health and vaccination status of children under their care. All providers reported that they took the children to a doctor in case a child felt sick or was injured. Most (80 percent; n=5) employer-run daycare centers had a medical professional on site. Some NGO and private providers also organized routine medical check-ups for their staff and children by a trained medical professional. NGO providers also reported making regular health check- ups available for children’s parents as well. This indicates that childcare centers can serve as a critical point for the delivery of select health services and maintenance of essential medicals records about children’s health and vaccination status. All providers reported having access to a 34 first-aid kit. Most providers also reported that if a child fell sick, the child was only allowed to come to the daycare once they did not display any symptoms of sickness. 4.3.3 Quality assurance Most providers do not have internal quality monitoring or assurance system. Several institutional care providers (45 percent; n=13) reported not having a quality assurance mechanism in their center. None of the home-based informal care providers were aware of any quality standards either, while some institutional providers that were managed by or collaborated with NGOs reported adopting implementation guidelines provided by the parent NGO. Private providers that catered to both high-income and low-income households developed their own quality standards and implementation guidelines based on international best practices. However, no mechanism to quality assure and enforce implementation of those guidelines currently exist. Due to the absence of a quality monitoring and assurance mechanisms, the quality of care is often suboptimal and varies widely across and within types of providers. Parental involvement in external care provision is limited. Parental involvement can provide a layer of accountability for the quality of service provision in childcare centers through participation in joint committees such as Parent-Teacher Associations. Globally, childcare cooperatives which are owned by parents and childcare providers have given parents a voice in their child’s care. However, care providers interviewed reported that they were unsuccessful in engaging parents despite repeated attempts through monthly or quarterly meetings. Some also expressed concerns that the childcare services they provide are not reinforced at home due to a lack of parental involvement and poor home environments. A large body of evidence (Chinen and Bos, 2016; Aboud, 2007) indicates that such a gap in the continuum of care can lead to long-term deficits in children’s development. 35 4.4 Lack of training has led to a significant skills gap among the caregiver workforce Table 4. Workforce qualifications and training opportunities available for sampled providers Private NGO daycare Public daycare Employer Home-based daycare center center center provided informal childcare provider Minimum University Secondary Secondary school Secondary No minimum qualification graduates for school certificate certificate and school certificate qualification. for caregivers pre-primary and prior prior childcare and prior Most cannot teachers and childcare experience childcare read or write prior childcare experience experience and lack any experience for formal caregivers qualification Training In-service In-service A combination of In-service No opportunities training training pre-service training opportunities for caregivers opportunities opportunities training and in- opportunities for training. available available service training available. Some Most home- opportunities providers based informal collaborate with providers have NGO partners not received any training Source: Qualitative data Significant investment in relevant skills training is essential to develop a skilled childcare workforce. Trained childcare providers are critical for providing high quality care services. Across types of providers, 65 percent (n=23) of the respondents reported receiving some training in childcare and development, primarily in-service. Training encompasses a wide range of skilling options ranging from multi-year formal education opportunities offered by universities such as bachelors or master’s degree in early childhood education or child development to shorter vocational training courses and in-service capacity development courses. Most trained respondents have only received on-the-job training provided by their employer. Trained care providers also reported that existing training options do not meet their needs. They reported that both pre-service and in-service trainings have shortcomings. Very few pre-service training options are currently available, and they found those options to be very 36 time consuming and lacking a practicum component. They also reported that short-term in- service trainings were not sufficiently comprehensive. Institutional providers prioritized practical knowledge and experience with childcare and child development over formal qualifications when hiring caregivers. Across NGO, employer, and private providers, 70 percent (n=13) of the respondents reported that a formal qualification in childcare, child development or nursing was not required to be hired as a caregiver at their daycare centers. However, private care providers emphasized that they prefer caregivers who have completed secondary school and are literate since several private care providers were embedded in playschools that also provided children with structured learning opportunities. A recent survey 22 of formal childcare centers found that on average, 68 percent of caregivers have completed Higher Secondary Certificate (HSC) or more (Rahman and Shams, 2021). Respondents also reported that most caregivers perform a variety of functions such as cleaning, feeding, and teaching and, therefore, a formal qualification in one area is not essential. However, some daycare centers that follow a structured early learning curriculum only hired individuals with a university degree or a certificate in education and early childhood development for roles that were exclusively focused on teaching. Due to a lack of external pre-service training options, caregivers in institutional daycare facilities are trained in-house. Respondents reported that external pre-service training options are limited and as a result, new caregivers in institutional daycare centers are trained in-house. The training covers areas such as early childhood development, early learning, children’s rights and protection, nutrition, daycare management and children’s health. Several respondents also reported that experienced caregivers were also provided with opportunities to upskill themselves through in-service refresher training. Across providers, training was either informally conducted by experienced caregivers or was outsourced to the collaborating or parent NGO partners. The training lasted from one day to two weeks. 22 The study interviewed 172 caregivers in center-based childcare centers in Bangladesh. The study sample did not include informal and individual caregivers who primarily provided care services in their homes. 37 Center based providers found attracting and retaining high-performing staff challenging. Since most institutional providers reported catering to a small group of children, they lack sufficient scale to hire specialized staff and require staff who are equally skilled at providing care services such as cleaning, feeding, and early learning services. However, a third of the institutional providers reported that they were unable to attract and hire care providers who were sufficiently qualified in providing both early learning and care services. They further reported that teachers who were equipped to provide early learning were unwilling to provide other forms of care. Therefore, they were compelled to hire specialized care providers, which can make care services unaffordable for children from low-income households, or provide sub- optimal quality of care. The respondents also reported that there was significant staff turnover and caregivers used the training to transition to jobs in the education sector. The low remuneration of caregivers further exacerbates retention of staff. A recent survey of caregivers in formal centers found that 40 percent received a monthly salary of BDT 5,000 – 10,000. 66 percent of them responded that higher financial benefits would attract and retain more caregivers (Rahman and Shams, 2021). “Suppose we hire a caregiver and give her training for childcare but after two months she informed that she does not want to continue and wants to go back to her village or to do any other job like play school teacher or to join garments. This type of problems happen. There are many expenses to prepare you, there are investments in training.” -A care provider in a private daycare center Home-based informal providers do not perceive the need for formal capacity building in childcare and child development. Most home-based informal providers of childcare services are illiterate and did not have any formal qualifications. They relied on their extensive experience of taking care of young children in their families and neighborhoods. Almost all (90 percent; n=10) providers reported not receiving any formal training in child development or childcare. Half of the home-based individual providers also reported a lack of interest in 38 undertaking training or a formal course in childcare for three reasons: (1) they perceive the training to be superfluous, given their existing experience in managing children; (2) high opportunity cost of formal training due to the loss of income on training days; and (3) the perception that low-income families will not pay a premium for trained caregivers. Home-based individual providers need to be adequately incentivized to be trained to improve the quality of care services. Stipend support for training, paths to formalization and access to capital for business expansion can serve to incentivize home-based individual providers’ participation in training. Such programs have been successfully deployed in other contexts. For instance, in Mexico, through the ‘Programa Estancias Infantiles para Apoyar a Madres Trabajadoras y/o Padres Solos (PEI)’ program, the government offered subsidies to setup home-based daycare centers to women who have completed secondary education and received a national caregiver accreditation. 5. The impact of COVID-19 on the demand for and supply of childcare in urban Bangladesh The COVID-19 pandemic presented unprecedented childcare challenges for parents in Bangladesh. With the onset of COVID-19, childcare centers and pre-schools were closed. Restrictions imposed on movement in the early phases of the pandemic and the fear of contracting the virus, precluded parents from seeking care options outside their household. As a result, Bangladeshi parents bore the full burden of childcare. As expected, women were disproportionately entrusted with childcare responsibilities. Evidence shows that Bangladeshi women spent nearly 4 times the amount of time than men in providing unpaid childcare during 39 the pandemic23. This may be one of the causes of the reversal of Bangladesh’ progress in improving its female labor force participation. Further, the lack of parent’s psychosocial wellbeing caused by the fear of contracting COVID-19 and economic uncertainty, also prevented parents from providing their children with high quality care. Households with parents employed in the informal sector, without employment benefits such as childcare and paid leave, were worse hit since childcare responsibilities in these households were either shifted to older siblings or these children received no care at all. The impact of the pandemic on the suppliers of childcare services in Bangladesh is not fully known. However, globally it has been observed that COVID-19 has adversely affected the childcare sector. Due to a decrease in the demand for childcare and government-mandated closures, revenues for childcare centers have significantly reduced. Shrinking revenues have forced many childcare providers to halt operations, leading to a reduction in the supply of affordable childcare. Global evidence also suggests that the childcare workforce has suffered during the pandemic. Lockdowns have led to several months of lost income for providers. In low-and middle-income countries, a large share of the providers are informally employed and were not eligible for social protection scheme such as unemployment benefits during the pandemic. Providers who continued working during the pandemic faced difficult working conditions in the form of increased workload and a lack of protection from the virus (Grantham et al., 2021). 23 Charles Kenny and George Yang. (2021). The Global Childcare Workload from School and Preschool Closures During the COVID-19 Pandemic. https://www.cgdev.org/sites/default/files/global-childcare-workload-from-school- closures-covid.pdf 40 6. Conclusion 6.1 Demand for childcare services is low, but increasing steadily The demand for external childcare services is increasing. Mothers currently express a strong preference for immediate or extended family for childcare support. In large part, this is driven by social norms and mothers’ own lived experiences, as well as limited options. However, family structures are changing in a rapidly urbanizing Bangladesh with fewer multi-generational households than before. Many economic migrants in urban areas do not live close to their extended family and cannot access them for childcare support. This suggests that family caregivers will likely be less available in the future for many households. In households that did not have elders living with them, mothers became sole caregivers limiting their employment and productivity. Supply of quality, affordable childcare will therefore be critical to ensure mothers do not drop out of the labor force in the absence of extended family support. Highlighting child safety and child development provisions when marketing services is important to increase demand. There is a lack of information among low-income mothers about what childcare options are available outside of their family. This is partly driven by the limited supply of care providers and the nascent nature of the childcare service sector in Bangladesh. However, even among mothers who are aware of such options, take-up is low. For most mothers, perceptions of child safety and the potential for child development are the two factors driving their choice of care provider. Mothers believe that children’s development potential and safety can be maximized with family caregivers, while many external providers lack adequate safety measures. In order to facilitate use of their services, it is important that care providers have clear and transparent messaging around child safety and development when marketing their services. Given the prevalence of home-based care, it is also important to inform family caregivers of childcare best practices. The first 1000 days of a child’s life are critical for building the foundation for future life success. Studies show that during this time, children need a range of 41 inputs around care and stimulation, protection from stress, adequate healthcare and nutrition, and opportunities to play and learn. Without the right inputs, children are at risk of developing deficits that persist throughout life (Devercelli and Beaton-Day, 2019). Equipping mothers and other family caregivers with knowledge on childcare best practices can also help them adopt good practices and move away from risky childcare practices, such as relying on other children for childcare to incorporating simple measures that can help child development. At the same time, knowledge of childcare best practices in the early years can also provide mothers with a benchmark to assess external childcare providers, both formal and informal. 6.2 The current financing mechanism for low-cost care providers is unsustainable The lack of sustainable financing is a major challenge for affordable care provision in Bangladesh. In order to increase accessibility, some care providers offer services at little to no cost. However, this has resulted in severe gaps between revenue and the cost of operations, as well as over-dependence on external sources of funding. In addition to sustainability concerns, this has major implications on the quality of service provided. Alternative models of improving accessibility can provide solutions. Government subsidies to low-cost care providers have been used to improve affordability in Mexico and India. Government subsidies towards caregiver training can help improve the quality of care provided. At the same time, given the high cost of space in urban areas, governments can support by providing space for childcare facilities near informal workplaces (Moussié, 2020). Subsidies towards public provision of care can be better targeted to those in need. Linkages with safety net programs (such as child benefit cash transfers) can also play a critical role in increasing accessibility of childcare services. 6.3 The quality of affordable childcare is typically low, and varies significantly across providers The absence of a regulatory framework and minimum standards for childcare has led to significant variations in the quality of care. Due to a lack of trained and experienced caregivers, insufficient funds, and limited parent engagement, children continue to grow in suboptimal 42 environments. Further, apart from the Labor Act (2006) that provides limited guidance for employer-provided childcare, no regulatory framework for care provision currently exists. As a result, the quality of services is highly variable across different types of providers. The Child Daycare Center Bill provides an opportunity to outline minimum quality standards for the sector while keeping the regulatory framework inclusive of low-cost providers. Investing in building a skilled childcare workforce will be critical to ensuring quality. At the same time, guidelines on quality assurance must emphasize on parents’ role in monitoring quality of service. Government providers expressed their intention to provide children with a comprehensive package of care services that include early learning, health, nutrition, and social protection interventions. Therefore, stronger coordination between various government agencies will be essential to create a comprehensive set of standards for providing holistic childcare. 43 7. Recommendations • Increase supply of care providers by incentivizing private investment in childcare • Encourage employers to partner with childcare providers for service provision, and offer childcare benefits to both male and Government, ACCESS female employees childcare service • Offer flexible, and longer hours of operation that better cater to providers parents working in the informal sector • Customize outreach strategy for urban areas, highlighting child safety and child development provisions • Provide financial support (in the form of low-cost credit or grants) to affordable care providers to meet the minimum standards under the Child Daycare Center Bill • Subsidize low-cost providers to bridge the gap between revenues AFFORDABILITY Government and cost of operations • Provide cash assistance to poor and vulnerable households to cover child-related expenses in the early years (e.g., through child benefit programs) • Develop guidelines on minimum quality standards for all providers, including specific guidance for low-cost and informal providers Government, in • Build and implement institutional mechanisms to accredit, partnership with QUALITY regulate, and monitor childcare service providers. Develop quality civil society, assurance mechanism for informal providers. NGOs • Invest in building a trained childcare workforce, including developing relevant curricula, providing adequate and accessible training opportunities, and incentives to pursue certification • Provide clear messaging to parents on the importance of early Government, years and key inputs required during this time. This includes inputs NGOs, civil CARE AT HOME on health and nutrition, play and stimulation, and child safety. society, childcare • Develop guidelines on childcare best-practices, and make them providers easily accessible to low-income families. 44 References Aisenbrey, S., Evertsson, M., & Grunow, D. (2009). Is There a Career Penalty for Mothers' Time Out? A Comparison of Germany, Sweden and the United States. Social Forces, 88(2), 573-605. Retrieved December 15, 2020, from http://www.jstor.org/stable/40645817 Aphichoke Kotikula, Ruth Hill and Wameq Azfar Raza. 2019. “What works for working women? Understanding female labor force participation in urban Bangladesh”. Washington, DC: World Bank. Das, M., Elsey, H., Shawon, R. A., Hicks, J., Ferdoush, J., Huque, R., ... & Mashreky, S. R. (2018). Protocol to develop sustainable day care for children aged 1–4 years in disadvantaged urban communities in Dhaka, Bangladesh. BMJ open, 8(7), e024101. Devercelli, Amanda and Beaton-Day, Frances. 2019. “Better Jobs and Brighter Futures: Investing in childcare to build human capital”. World Bank, Washington, DC. García, J. L., Heckman, J. J., Leaf, D. E., & Prados, M. J. (2016). The life-cycle benefits of an influential early childhood program (No. w22993). National Bureau of Economic Research. International Finance Corporation. 2019. “Tackling Childcare: The Business Benefits and Challenges of Employer-Supported Childcare in Bangladesh”. Washington, DC. World Bank Group Moussié, Rachel. 2020. "Quality childcare services for workers in the informal economy." Policy Brief No. 1. Joint production of the International Labour Organization (ILO) and WIEGO. Rahman, Fahmina. 2019. “Addressing youth employment in Bangladesh: Insights on design from five programs implemented by PKSF.” World Bank, Washington, D.C. Thomas Farole, Yoonyoung Cho, Laurent Bossavie, and Reyes Aterido. 2017. “Bangladesh Jobs Diagnostic.” World Bank, Washington, DC. Tamm, Marcus. 2018. “Fathers’ parental leave-taking, childcare involvement and mothers’ labor market participation”. Institute of Labor Economics Discussion Paper Series. 45 Solotaroff, Jennifer L., Aphichoke Kotikula, Tara Lonnberg, Snigdha Ali, Rohini P. Pande, and Ferdous Jahan. 2019. Voices to Choices: Bangladesh’s Journey in Women’s Economic Empowerment. International Development in Focus. Washington, DC: World Bank. UNICEF. 2015. “Analysis of the situation of children and women in Bangladesh 2015”. 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Evans (2013) The physical environment and child development: An international review, International Journal of Psychology, 48:4, 437-468, DOI: 10.1080/00207594.2013.804190 Chinen, M., Bos, J.M., (2016). Final Report for the Impact Evaluation of the Save the Children Early Childhood Stimulation Program in Bangladesh. Washington, DC: American Institutes for Research. Aboud F. E. (2007). Evaluation of an early childhood parenting programme in rural Bangladesh. Journal of health, population, and nutrition, 25(1), 3–13. Heckman, J. J., Moon, S. H., Pinto, R., Savelyev, P. A., & Yavitz, A. (2010). The rate of return to the HighScope Perry Preschool Program. Journal of Public Economics, 94(1–2), 114–128. https://doi.org/10.1016/J.JPUBECO.2009.11.001 46 Rahman, T. and Shams, F. (2021). Skills Training Needs of Childcare Workforce in Bangladesh. Presentation. June 15. World Bank, Dhaka. Grantham, K. , Rouhani, L., Gupta, N., Melesse, M., Dhar, D., Mehta, S.K., Kingra, K.J. (2021). Evidence review of the global childcare crisis and the road for post-covid-19 recovery and resilience. https://docs.gatesfoundation.org/documents/evidence_review_of_the_global_childcare_crisis _and_the_road_ahead_for_covid-19_recovery_and_resilience_english.pdf 47 Annex 1. Research methodology We undertook a mixed-methods study to assess the demand-side needs for childcare among low-income urban families and understand the existing supply of childcare provision catering to the urban poor in Bangladesh. Through this needs assessment, we aim to answer the following questions: Demand-side need for childcare: • What are the existing care options available for low-income families in urban Bangladesh? • What factors motivate the choice of childcare options for low-income families in urban Bangladesh? • How much do low-income families currently pay for childcare? What is their willingness to pay? • How is the choice of childcare related with the respondent’s profile (demography, family structure, location, income, etc.)? • What are the perceived constraints/gaps in existing care options? What features of childcare are most important for low-income families? Supply of childcare provision • What are the existing childcare provision models available to low-income families in urban Bangladesh? What is the caregiver-child ratio, care services provided, child safety mechanisms, registration requirements and management structures in the existing options? • How do providers monitor and assure the quality of care services? What quality assurance and accountability structures currently exist and how are they enforced? • What are perceived constraints/gaps that the caregiver faces in providing quality care? • How do care providers finance the operating costs of care provision? 48 • Have care providers been trained in childcare and what professional development opportunities exist for care providers? Sample We drew a sample of 1200 mothers to understand existing care needs, factors that motivate the choice of care, affordability of care options, and the perceived constraints in accessing childcare. Mothers with at least one child in the 0-3 years age group and from households with a monthly income of less than BDT 10,000 (US $117) were included in the study sample. The study took place in urban Dhaka and Chittagong. The study team leveraged existing databases 24 of low-income households to draw the mothers’ sample. Since some mothers could not be reached, a snowballing sampling approach that relied on referrals from mother who could be reached was used. These mothers were surveyed about their existing childcare practices and needs pertaining to childcare. To understand existing models of childcare provision and childcare providers’ needs, 23 childcare providers across different provision modalities were included in our study sample. Mothers included in our study were asked to provide referrals for childcare providers they were currently using or knew about. Based on mothers’ referral, the research team shortlisted 25 providers to be included in the study sample. Of the 25 providers, the research team could not reach 2 childcare providers. The study team conducted structured interviews with the remaining care providers. The sample included home-based individual providers of childcare and center-based childcare providers. Center-based childcare providers included caregivers from private providers, NGO-run childcare centers and employer provided childcare centers. Due to COVID-19 related closures, the team was unable to interview care providers at government childcare centers. As a result, the needs assessment team interviewed the project 24 The existing databases include the World Bank’s DIGNITY database, SVN Netherlands Development Organization’s database that included families employed in readymade garment factories. 49 director, who oversaw the provision of childcare in 85 public childcare centers to understand childcare provision in government centers. Data collection protocol The quantitative data collection with mothers took place in September-October 2020 and caregivers’ interviews lasted for four months from October 2020 to February 2021. Due to COVID-19 related restrictions, mothers’ surveys were conducted via phone while caregivers were interviewed in person in their childcare centers since the data collection team was also required to record their observation about the infrastructure and facilities available at childcare centers. The data collection team took the following steps to ensure that the data was reliable and accurate: • Prior to the commencement of data collection, all enumerators received a virtual training about the purpose of the study, informed consent, and the data collection instrument. • For a small proportion of the sample, two enumerators would contact the study participants to ensure that the collected data was reliable and accurately recorded • The data collection team undertook regular high-frequency checks for ensuring completeness and consistency in data collection. The data collection team also noted anomalous data points and verified the data through back checks with the respondent. • The data collection team maintained a regular record of the study participants interviewed on a particular day and the records were updated in real-time. Adapting data collection to COVID-19 Data collection was conducted during the pandemic, which posed multiple challenges. Concerns about the health and safety of enumerators and respondents led to the surveys being conducted over phone. The questionnaire was also shortened and adapted for phone based surveys. Data quality protocols were adapted, including daily monitoring and data checks. The findings of the study should be viewed in light of the following limitations: 50 • Phone based data collection resulted in a high non-response rate. Several calls were either rescheduled to a later date or not answered. • Pandemic related shutdowns led to many urban migrants moving back to their hometown. Care practices were affected as lives were severely disrupted. The team tried to address this by framing questions around ‘usual practice’, instead of ‘current practice’. • The needs assessment team was unable to visit government childcare centers and interview government care providers. As a result, the team interviewed the project director, who oversaw 85 government daycare centers. Even though, the project director provided critical insights about care provision in government daycare centers, we were unable to obtain center-specific details and therefore cannot draw direct comparisons between government childcare centers and other center-based providers on some parameters. 51 Annex 2. Matrix of sampled care providers Profit Care Legal provisions Sources of Services available Cost of services Primary recipients Size structure provision revenue setting Home-based For-profit Primarily Not governed by Monthly fees or in- Home-based Variable monthly Children in the 0-2 One Informal home- any legal kind payments informal providers payments ranging years age group from caregiver Care based framework or collected from were primarily from BDT 250 ($2.96) low-income provides Providers regulatory body parents responsible for to BDT 3000($35.49). households care services feeding and The monthly fee is to at most cleaning the child in informally decided two children the absence of their based on the child’s at one time parents. needs and family’s socio-economic status. 52 Profit Care Legal provisions Sources of Services available Cost of services Primary recipients Size structure provision revenue setting NGO Non-profit Institutional Governed by the Monthly fees In addition to Small voluntary A majority of children The number daycare same legal collected from feeding and monthly contribution were in 2-6 years age of children centers frameworks as parents, cleaning, they collected from group. Most children ranges from the parent NGO institutional donor provide early parents ranging from lived in the nearby 10 to 35 through the funding and learning BDT 20 ($0.24) to slums. children at a Bureau of NGO voluntary opportunities, BDT 200 ($2.37) to daycare affairs in the contributions from nutritious meals and make parent’s feel center. Prime Minister’s parents medical check-ups. more involved in Office. Children’s parents their child’s care. However, no eligible to regulatory participate in NGOs framework for allied program such the daycare as adult literacy specifically classes and savings groups. 53 Profit Care Legal provisions Sources of Services available Cost of services Primary recipients Size structure provision revenue setting Private For profit Institutional Private daycare Monthly fees Several private Monthly fees range Private daycare The number daycare centers are collected from daycare centers between 700BDT centers admitted of children centers required to parents. Some provided children ($8.28) to 5000BDT older children ranges from obtain a private daycare with a wide range of ($59.16). Private ranging from 3-12 25 to 120 standard trade centers also charge early learning and providers were the years, since they children. license. one-time stimulation most expensive paid were embedded in However, they admission fees. opportunities and option available in larger primary are not nutritious options the care market. schools and provided governed by any for meals. Some care to children after regulatory daycare centers also school hours regime. had sophisticated tools to ensure children’s security such as CCTV cameras and dedicated security personnel. 54 Profit Care Legal provisions Sources of Services available Cost of services Primary recipients Size structure provision revenue setting Employer Non-profit Institutional Employers are Employer profit Employer-provided Services are provided Children of Given the provided required to with occasional in- daycare centers to children at no cost. employees working limited daycare provide onsite kind contributions provided children in readymade space, most center childcare from NGO partners with early learning garment factories in centers services to opportunities and the 2-6 years age could not employees if nutritious meals group accommodat they employ at apart from feeding e more than least 40 women and cleaning 10 children. employees with services. Several children in the employer-provided 0-6 years age care facilities also group had an onsite medical professional. 55 Profit Care Legal provisions Sources of Services available Cost of services Primary recipients Size structure provision revenue setting Government Non-profit Institutional Established to Funded through a These centers Differentiated for Children from all The centers day-care implement combination of provide children children from low- income groups living could center MoWCA’s 5 monthly and with early and high-income in nearby locations accommodat years plan for admission fees opportunities and households. Low- e up to 60 daycare collected from meals in addition to income families paid children with provision for parents, feeding and BDT 50 ($0.59) per nearly 12 working women. government cleaning. month. 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C. Thomas, Victoria C. P. Knowland, Cathy Rogers January 2020 To view Social Protection & Jobs Discussion Papers published prior to 2020, please visit www.worldbank.org/sp. ABSTRACT Investments in childcare can generate immense economic and social benefits through increased female labor force participation and improved child development outcomes. However, high quality childcare options in Bangladesh are limited and available options are unaffordable for the urban poor. This paper examines the needs, preferences, and practices pertaining to childcare among parents and care providers for low-income households in urban Bangladesh. On the demand side, this paper finds that rapid urbanization along with a decrease in multigenerational households are increasing the demand for childcare services. Perceptions of child safety and the potential for child development are the two main factors driving the choice of care provider. However, knowledge of childcare best practices is limited among the urban poor, resulting in risky childcare practices at home. On the supply side, there is a severe gap in care provision, limiting access for the urban poor. The lack of sustainable financing is a major challenge for affordable care provision in Bangladesh. The absence of a regulatory framework and minimum standards for childcare has led to significant variations in the quality of care. ABOUT THIS SERIES Social Protection & Jobs Discussion Papers are published to communicate the results of The World Bank’s work to the development community with the least possible delay. This paper therefore has not been prepared in accordance with the procedures appropriate for formally edited texts. For more information, please contact the Social Protection Advisory Service via e-mail: socialprotection@ worldbank.org or visit us on-line at www.worldbank.org/sp