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Child Care Subsidies: Who Uses Them and What Do They Buy Low-Income Families and Children?
Johnson, Anna D., 2009
Columbia University, Teachers College

This study uses data from the nationally representative Early Childhood Longitudinal Study-Birth Cohort (ECLS-B) to: (1) determine whether eligible recipients of child care subsidies differ from the eligible non-recipients of child care subsidies on child and family characteristics and parental preferences for child care; (2) examine whether subsidy receipt in preschool leads parents to purchase higher-quality child care than they could have afforded without the subsidy; and (3) test whether subsidy receipt in preschool is associated with better school readiness in kindergarten. Expanding on prior work, this study identifies eligible non-recipients of child care subsidies who resemble subsidy recipients not only on observable demographic characteristics but also on variables that are harder to measure, like parental preferences for specific features of child care. Subsidy recipients are compared to eligible non-recipients on family and child characteristics and parental preference variables. Then, a propensity score matching technique is used to estimate the causal effect of subsidy use in preschool on the quality of preschool care children experience. Finally, state-fixed effects regressions with a lagged dependent variable are employed to test whether subsidy use in preschool is associated with children’s school readiness in kindergarten. If such an association exists, the possibility that preschool child care quality mediates this link is explored. In all analyses, children who receive subsidies are compared to children who are eligible for subsidies but who instead use either Head Start, or public pre-kindergarten, or unsubsidized care.

Administration for Children and Families/OPRE Projects

Patterns of Child Care Subsidy Use in New York City: Care Arrangements, Parental Preferences, and Subsidy Administration Policies
Brooks-Gunn, Jeanne, 2007
Columbia University, Teachers College

The goal of this project is to examine associations among parental preferences for child care, parents' perceptions of care quality, subsidy policies, and the care arrangements that low-income working families in New York City use for their young children. The project relies on two data sources: (1) New York City administrative data on the entire population of subsidy recipients with children age 6 and younger to describe families' child care arrangements; and (2) a phone survey with a random sample of 2,250 families drawn from the administrative data file. The survey asks parents about their reasons for selecting each of their care arrangements, their level of satisfaction with the care they use, the dimensions of care that they perceive as most important, their work/family balance, and their experiences with the subsidy administration system. Using these data, the project attends to four sets of research questions: (1) What are the dynamics of subsidy use? What is the duration of subsidy use?; (2) Is there a mismatch between parents' stated preferences for child care, and the care that they actually use? What are the policy barriers that potentially prevent families from accessing the care that they prefer? Are there specific barriers faced by families who receive vouchers (as opposed to those who receive care in a contracted setting) that affect their use of formal care?; (3) Are parental preferences for child care differentially associated with the use of formal versus informal care? How are parental perceptions of child care quality and parental work characteristics associated with the use of formal or informal care?; and (4) Does the continuity of care depend on whether the care is informal or formal?

Administration for Children and Families/OPRE Projects