Nannies Making Six-figures? What Childcare Workers Really Take Home
By Bryce Covert, Next New Deal Editor
The rich are different than you and me, and here’s one more bit of evidence that Adam Davidson recently dug up in the New York Times Magazine: the 1% is shelling out hundreds of thousands of dollars for childcare. He spoke with an elite nanny agency, plus some of these high-end nannies themselves, and discovered at least one making $180,000 a year plus an apartment and bonuses. Yet nannies making six figures are quite an exception to the low pay that is the norm for childcare workers.
Some memes have to be popped after they’ve already taken on steam, but sometimes we can get out in front of them. For one might be led to think that New Yorkers are paying top dollar to compensate their live-in childcare workers lavishly. It made Derek Thompson wonder, “How in the world can Manhattan nannies be worth $200,000 a year?” His answer is that there is a “Nanny Effect” to locally delivered services such as childcare. Because “most of the jobs in a service economy have a local clientele,” he says, “in cities where incomes are high, average price levels for these services are typically high.” Anyone who’s walked into a hair salon on the Upper West Side for a cheap cut will understand this phenomenon.