.@ATabarrok takes a clever approach to demonstrating that the rising relative cost of childcare is mostly a Baumol effect rather than a consequence of state-level regulation: pet care has also risen in relative cost, though slightly less. However, there is one kind of regulation that limits the supply of both services and has probably gradually tightened over time: zoning. Yes, commercial uses have faced far less regulatory tightening than residential ones, but restrictions on home-based businesses and other services provided in or near residential neighborhoods, in particular, have gotten absurdly tight in many places.
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