Federal law limits eligibility of child care subsidy receipt to a maximum of 85% of a state's median income, but states may choose to set thresholds below this level. As a result, there is a substantial amount of variation in the thresholds states set and variation within states over time. This variation in eligibility is used in the present study to predict changes in parent employment, child care arrangements and child outcomes. Specifically, this project examines the impact of eligibility for child care subsidies, as determined by state income eligibility thresholds, on parents' labor force participation and child care choices. In addition, the study investigates whether the change in child care and parent employment experiences by eligible families has subsequent effects on child behavior and school readiness. Measures include: Child Care Development Fund (CCDF) State Plans; National Household Education Survey (NHES); National Health Interview Survey (NHIS).