In general, the geographic limitations and the diversity in type of daycare providers make child daycare a highly fragmented industry. The largest providers own only a very small share of the market. This leads to frustration for parents who are attempting to find quality child daycare, with 87% of them describing the traditional search for child daycare as "difficult and frustrating".
How Much For Child Care
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In Germany, preschool education is the domain of the Kindertagesstätte (literally "children's day site", often shortened to Kita or KITA), which is usually divided into the Kinderkrippe (crèche) for toddlers (age up to 3 years), and the Kindergarten for children who are older than three years and before school. Children in their last Kindergarten year may be grouped into a Vorschule ("preschool") and given special pedagogic attention; special preschool institutions comparable to the US-American kindergarten are the exception.
How Much For Day Care
For all providers, the largest expense is labor. In a 1999 Canadian survey of formal child care centers, labor accounted for 63% of costs and the industry had an average profit of 5.3%. Given the labor-intensive nature of the industry, it is not surprising that the same survey showed little economies of scale between larger and smaller operators.