Investing in the care economy: A step-by-step guide for measuring gaps, costs, and returns on investing in care services sectors

Care is essential to the well-being of people, communities, economies, and ecosystems, yet in most countries care systems are marked by significant gaps and inequalities affecting both those who need care and those who provide it. There is increasing recognition of the urgent need to scale up investments in the care economy to support gender equality, economic prosperity, and social well-being. Expanding and strengthening care services—including early childhood care and preschool education, care and education of school-age children, healthcare, long-term care, and social services—is central to this effort.

This publication offers a practical policy tool to address these challenges. It presents a clear methodology to analyze coverage gaps in paid care services, estimate the costs required to close these gaps, and assess the potential economic and social returns of increased public investments in care services. It is designed to support policymakers and practitioners by providing a structured approach to understanding and addressing gaps in care provision.

By generating evidence on coverage, costs, and returns, the tool supports informed decision-making and strengthens the case for public investment in the care economy, particularly in care services. It contributes to evidence-based policy design and budgeting by enabling users to present a clear rationale for expanding public spending and advancing more inclusive and equitable care systems.