A new study by the Institute for German Economy (IW) in Cologne has revealed significant disparities in public investment in early childhood care across Germany, highlighting a persistent regional divide and raising questions about equitable access to essential services. The findings, published this week, demonstrate that eastern German states are consistently allocating substantially more per capita for the care of children under six than their western counterparts.
The study’s analysis of 2023 data indicates a striking imbalance. Brandenburg leads the nation, investing €12,145 per child under six in daycare facilities and registered care providers. This is followed by Berlin (€11,964), Mecklenburg-Vorpommern (€11,061) and Saxony-Anhalt (€10,693). Conversely, North Rhine-Westphalia, Bavaria and Saarland lag at the lower end of the spectrum, with expenditures of €9,085, €8,978 and €8,895 per child respectively. Baden-Württemberg, the economic powerhouse of Germany, spent a comparatively meager €8,590. The national average sits at €9,563 per child.
IW family economist Wido Geis-Thöne attributes this substantial regional variation primarily to differing rates of childcare enrollment for children under three years old. He notes that in March 2023, western German states only enrolled 19.4% of non-school-aged children under three in daycare, while eastern states boasted a rate of 28.2%. “Given comparable quality standards, maintaining smaller cohorts necessitates a significantly greater staff-to-child ratio, resulting in increased costs” Geis-Thöne’s analysis states, implicitly criticizing the low uptake in western states.
Beyond daycare attendance, the study examines net expenditures for child and youth welfare. Bremen leads in this category with €2,657 per minor, followed by Berlin (€1,969), Saxony-Anhalt (€1,829) and Brandenburg (€1,827). Bavaria (€1,082), Baden-Württemberg (€1,172) and Thuringia (€1,398) fall significantly behind.
The findings are likely to reignite the ongoing debate surrounding regional economic imbalances and the responsibility of wealthier states to contribute to a more equitable distribution of resources. Geis-Thöne concludes that Baden-Württemberg and Bavaria, in particular, “could and should” allocate greater financial resources to early childhood care and child and youth welfare, emphasizing the need to make care for children under three more accessible and appealing. Critics contend that the lower enrollment rates and reduced spending in these states may inadvertently perpetuate cycles of inequality, limiting opportunities for children in their formative years and potentially hindering long-term social and economic progress. The study’s release comes as pressure mounts on state governments to address affordability concerns and expand access to quality childcare services across the country.