The Cost of Care: Childcare Deficits and Gender Inequality in Urban Honduras

A collaborative study conducted by the World Bank’s Gender Innovation Lab for Latin America and the Caribbean (LACGIL), the Poverty Global Practice, and the Early Learning Partnership Multi-Donor Trust Fund (ELP) has brought into sharp focus the critical lack of formal childcare services in Honduras. Drawing on extensive research across Tegucigalpa, San Pedro Sula, and Choloma, and engaging institutions such as the Ministry of Education, the Ministry of Development and Social Inclusion, and the Directorate of Childhood, Adolescence, and Family (DINAF), the study links these gaps directly to gender disparities in the labor market. It finds that inadequate childcare options continue to prevent Honduran women from fully participating in economic activities, especially during and after the COVID-19 pandemic.

Low Enrollment and High Inequality

Despite strong evidence supporting the developmental and economic benefits of early childhood education, Honduras ranks among the lowest in the region for childcare service enrollment. According to the study, just 1.2% of children aged 0–2 and 37.9% of those aged 3–5 attend any form of formal childcare. This is striking given that over 40% of Honduran households have at least one child under the age of six. Simultaneously, the country has the second-highest gender gap in labor force participation in Latin America and the Caribbean, 33.7 percentage points, trailing only Guatemala. While 88% of men of working age are active in the labor market, only 54% of women participate. This gap is even more pronounced among women with young children, 77% of whom say they are kept from work due to caregiving duties.

Pandemic Pressures and a Deepening Divide

The onset of COVID-19 exacerbated these existing inequalities. When strict lockdowns were implemented in March 2020, childcare centers and schools were shuttered indefinitely. Although some providers attempted to pivot to virtual services, nearly half had to lay off staff, and around 20% indicated they might not reopen at all. A year later, in mid-2021, many centers remained closed even as other sectors began to recover. By then, urban employment had bounced back to near-prepandemic levels, and 61% of parents were working. However, the gender gap in employment remained wide: 92% of men were employed compared to only 48% of women. For women who had jobs before the pandemic, caregiving responsibilities were often the reason they stopped working, while men more frequently cited contract termination or business closures.

Public vs. Private: Disparities in the Childcare Market

The study also conducted a detailed survey of 56 childcare providers, revealing significant operational differences between public and private institutions. Public centers tend to have higher capacity but fewer staff and less favorable caregiver-to-child ratios. In contrast, private providers, though smaller, offer better infrastructure, longer hours, and higher caregiver qualifications. Private centers are also more likely to remain open during weekends and provide services throughout the year, including during school holidays. However, these benefits come at a steep cost. Parents pay an average of L 1,751 (about USD 70) per month at private centers, nearly ten times the L 165 paid at public centers. Additional expenses at private institutions often include language classes and school materials, while public centers typically charge for basics like food and water.

Weak Regulation and Institutional Ambiguity

One of the study’s key findings is the lack of a cohesive regulatory framework for early childhood care in Honduras. While the Ministry of Education oversees services for children aged four and older, there is no designated authority for those aged 0–3. DINAF, the agency nominally responsible for childcare services, lacks the legal power and resources to enforce standards. As a result, most childcare centers, especially private ones, set their own health, nutrition, and safety protocols. Even municipal authorities, who assumed responsibility for some centers after the closure of IHNFA in 2014, operate without consistent funding or guidance. Public investment in early childhood remains below 1% of GDP, and most of it is directed at health and nutrition rather than education or protection.

Cultural Norms and Parental Preferences

Social perceptions about gender roles and motherhood further undermine demand for formal childcare services. The study found that more than 60% of parents agreed with the statement that children suffer if their mothers work outside the home. Additionally, a majority of men, and nearly half of women, believe that men should have more rights to employment than women. Even among women who were working before the pandemic, many agreed that they should now devote more time to domestic responsibilities. These entrenched attitudes contribute to the persistence of at-home care as the dominant arrangement. Before and during the pandemic, over 90% of children under six were cared for by parents or other family members, and only a small minority utilized nannies or formal childcare services.

A Path Forward for Inclusive Growth

The report underscores that accessible and high-quality childcare is vital not just for child development but for women’s empowerment and economic resilience. It recommends reforms in five key areas: expanding affordable childcare access; clarifying institutional responsibilities for children aged 0–3; providing financial assistance to reopen and sustain centers; removing gender bias from employer-mandated childcare policies; and introducing community-based programs supported by public subsidies. Without these measures, women will continue to be disproportionately excluded from the workforce, and Honduras will miss the opportunity to fully harness its human capital. In the post-pandemic recovery, formal childcare must be viewed as essential infrastructure, paving the way not only for stronger families but also for a more equitable and prosperous society.