A report by the Panel on Child Care Policy, an interdisciplinary panel established in 1987 to review and assess knowledge about the costs, effects, and feasibility of alternative child care policies and programs as a basis for future decision making 13 presented in this document. An executive summary and introductory first chapter are followed in Chapter 2 by a summary of trends in work, family structure and income, and child care which points out the implications of these trends for the supply of and demand for alternative child care. Chapter 3 traces the development of child care research. Chapter 4 reviews knowledge about the quality of care and children's developmental needs at various ages and stages of development. Chapter 5 highlights knowledge concerning the best practices for safeguarding children's health and safety, and for the design and implementation of child care services. Chapter 6 examines the delivery system for child care and early childhood education programs. Chapter 7 focuses on public policies and programs at federal and state levels. Employer policies and benefit programs are also considered. Chapter 8 discusses tradeoffs between quality, availability, and affordability, and the extent to which each of these qualities would be affected by proposed policies. Chapter 9 outlines directions for future data collection and research. Chapter 10 presents the Child Care Policy Panel's priorities for future policy and program development. Appendices provide information on state regulations for family day care and center care and professional standards for early childhood programs. A total of 543 references are cited. (RH)