Comparison is to the wages the caretaker is giving up in order to be at home with the child. Of course there is a spectrum but it is a high bar.
I don’t think very many people are paying more for daycare than they make while their kids are in it.
Of course, those that make more don't, those that make less are likely to just DIY. And with those who make more, the ratio is still not even close to N, which makes the overhead interesting.