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Child care subsidies and employment outcomes of low-income families

Resource Type: Reports & Papers
Author(s): Ha, Yoonsook; Miller, Daniel P.
Date Issued: December, 2015
Description: This study examined the relationship between mothers' child care subsidy use and their earnings and labor force attachment. Using Wisconsin administrative data, this study examined 48 months of subsidy use for mothers who became eligible for child care subsidies between March 2000 and February 2001 (n = 8984). Comparing subsidy-eligible mothers who received subsidies and those who were eligible but did not, we estimated the likelihood of experiencing an increase (or decrease) in earnings and the likelihood of experiencing an increase (or decrease) in the number of quarters employed. We used multinomial regression models to estimate each economic outcome separately and used logistic regression models to estimate both of the outcomes together. In both separate and joint analyses of earnings and quarters employed, we found that subsidy receipt was associated with an increase in the probability of an increase in earnings and/or number of quarters employed and a decrease in the probability of a decrease in quarters employed. However, in general, these associations were only significant when mothers received a subsidy for 12 months or more. These findings suggest the importance of identifying potential barriers to subsidy use, as stable receipt of subsidies may contribute to parents' economic well-being. (author abstract)
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Journal Title: Children and Youth Services Review
Volume Number: 59
Issue Number:
Page Range: 139-148
Topics: Parents & Families > Parent/Family Practices and Structure > Families & Work

Policies > Child Care & Early Education Policies > Subsidies
Country: United States
ISSN: 0190-7409 Paper
1873-7765 Online
Peer Reviewed: yes
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