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A policy to provide child care access for all working families: Effects on mothers' employment and caseload

Description:
The federal government provides subsidies for child care to low-income families to promote employment and child development, among other reasons. These subsidies currently provide child care for 15 percent of eligible families, and the current subsidy rate in many states does not cover the full cost of care for parents. We present the effects of a policy that would expand child care by providing subsidies for children ages three and younger in working families with incomes at or below 200 percent of the federal poverty guidelines. The policy would also increase the average annual subsidy per child age three or younger from $5,562 (FY2013) to $10,000, which could potentially permit families to purchase higher quality child care. We used the Transfer Income Model (TRIM)--a microsimulation model--to estimate the impact this policy would have on maternal employment and program caseloads. Results showed: - An estimated 262,000 to 427,000 additional mothers would be employed. - An estimated 2.32 to 2.55 million children would receive subsidies (up from the FY2013 level of 1.44 million children). (author abstract)
Resource Type:
Reports & Papers
Country:
United States

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