IDEAS home Printed from https://ideas.repec.org/a/eee/cysrev/v59y2015icp139-148.html
   My bibliography  Save this article

Child care subsidies and employment outcomes of low-income families

Author

Listed:
  • Ha, Yoonsook
  • Miller, Daniel P.

Abstract

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 48months 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 12months 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.

Suggested Citation

  • Ha, Yoonsook & Miller, Daniel P., 2015. "Child care subsidies and employment outcomes of low-income families," Children and Youth Services Review, Elsevier, vol. 59(C), pages 139-148.
    • Handle: RePEc:eee:cysrev:v:59:y:2015:i:c:p:139-148
    DOI: 10.1016/j.childyouth.2015.11.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0190740915300918
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.childyouth.2015.11.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Herbst, Chris M. & Tekin, Erdal, 2010. "Child care subsidies and child development," Economics of Education Review, Elsevier, vol. 29(4), pages 618-638, August.
    2. Wu, Chi-Fang, 2011. "Long-term employment and earnings among low-income families with children," Children and Youth Services Review, Elsevier, vol. 33(1), pages 91-101, January.
    3. Erdal Tekin, 2007. "Childcare Subsidies, Wages, and Employment of Single Mothers," Journal of Human Resources, University of Wisconsin Press, vol. 42(2).
    4. Herbst, Chris M., 2008. "Who are the eligible non-recipients of child care subsidies?," Children and Youth Services Review, Elsevier, vol. 30(9), pages 1037-1054, September.
    5. Ahn, Haksoon, 2012. "Child care subsidy, child care costs, and employment of low-income single mothers," Children and Youth Services Review, Elsevier, vol. 34(2), pages 379-387.
    6. Ribar, David C, 1995. "A Structural Model of Child Care and the Labor Supply of Married Women," Journal of Labor Economics, University of Chicago Press, vol. 13(3), pages 558-597, July.
    7. Ha, Yoonsook & Meyer, Daniel R., 2010. "Child care subsidy patterns: Are exits related to economic setbacks or economic successes?," Children and Youth Services Review, Elsevier, vol. 32(3), pages 346-355, March.
    8. Lisa M. Powell, 2002. "Joint Labor Supply and Childcare Choice Decisions of Married Mothers," Journal of Human Resources, University of Wisconsin Press, vol. 37(1), pages 106-128.
    9. April Crawford, 2006. "The Impact of Child Care Subsidies on Single Mothers’ Work Effort," Review of Policy Research, Policy Studies Organization, vol. 23(3), pages 699-711, May.
    10. David C. Ribar, 1992. "Child Care and the Labor Supply of Married Women: Reduced Form Evidence," Journal of Human Resources, University of Wisconsin Press, vol. 27(1), pages 134-165.
    11. Berger, Mark C & Black, Dan A, 1992. "Child Care Subsidies, Quality of Care, and the Labor Supply of Low-Income, Single Mothers," The Review of Economics and Statistics, MIT Press, vol. 74(4), pages 635-642, November.
    12. Weber, Roberta B. & Grobe, Deana & Davis, Elizabeth E., 2014. "Does policy matter? The effect of increasing child care subsidy policy generosity on program outcomes," Children and Youth Services Review, Elsevier, vol. 44(C), pages 135-144.
    13. Tekin, Erdal, 2005. "Child care subsidy receipt, employment, and child care choices of single mothers," Economics Letters, Elsevier, vol. 89(1), pages 1-6, October.
    14. Jean Kimmel, 1998. "Child Care Costs As A Barrier To Employment For Single And Married Mothers," The Review of Economics and Statistics, MIT Press, vol. 80(2), pages 287-299, May.
    15. Zanoni Wladimir & Weinberger Gabriel, 2015. "Effects of Childcare Subsidies on Employment and Earnings of Low-Income Mothers," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(2), pages 589-619, April.
    16. Chris Herbst & Erdal Tekin, 2011. "Child care subsidies and childhood obesity," Review of Economics of the Household, Springer, vol. 9(3), pages 349-378, September.
    17. Robert A. Moffitt, 2003. "Means-Tested Transfer Programs in the United States," NBER Books, National Bureau of Economic Research, Inc, number moff03-1, March.
    18. Kimmel, Jean, 1995. "The Effectiveness of Child-Care Subsidies in Encouraging the Welfare-to-Work Transition of Low-Income Single Mothers," American Economic Review, American Economic Association, vol. 85(2), pages 271-275, May.
    19. David Blau, 2003. "Child Care Subsidy Programs," NBER Chapters, in: Means-Tested Transfer Programs in the United States, pages 443-516, National Bureau of Economic Research, Inc.
    20. Wenjui Han & Jane Waldfogel, 2001. "Child Care Costs and Women's Employment: A Comparison of Single and Married Mothers With Pre‐School‐Aged Children," Social Science Quarterly, Southwestern Social Science Association, vol. 82(3), pages 552-568, September.
    21. Charles Baum, 2002. "A dynamic analysis of the effect of child care costs on the work decisions of low-income mothers with infants," Demography, Springer;Population Association of America (PAA), vol. 39(1), pages 139-164, February.
    22. Rachel Connelly & Jean Kimmel, 2003. "The Effect of Child Care Costs on the Employment and Welfare Recipiency of Single Mothers," Southern Economic Journal, John Wiley & Sons, vol. 69(3), pages 498-519, January.
    23. Lowe, Edward D. & Weisner, Thomas S., 2004. "`You have to push it--who's gonna raise your kids?': situating child care and child care subsidy use in the daily routines of lower income families," Children and Youth Services Review, Elsevier, vol. 26(2), pages 143-171, February.
    24. Geoffrey L. Wallace & Robert Haveman, 2007. "The implications of differences between employer and worker employment|earnings reports for policy evaluation," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 26(4), pages 737-754.
    25. Charles Michalopoulos & Philip K. Robins & Irwin Garfinkel, 1992. "A Structural Model of Labor Supply and Child Care Demand," Journal of Human Resources, University of Wisconsin Press, vol. 27(1), pages 166-203.
    26. Marcia Meyers & Theresa Heintze & Douglas Wolf, 2002. "Child care subsidies and the employment of welfare recipients," Demography, Springer;Population Association of America (PAA), vol. 39(1), pages 165-179, February.
    27. Johnson, Anna D. & Martin, Anne & Brooks-Gunn, Jeanne, 2011. "Who uses child care subsidies? Comparing recipients to eligible non-recipients on family background characteristics and child care preferences," Children and Youth Services Review, Elsevier, vol. 33(7), pages 1072-1083, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Slicker, Gerilyn & Hustedt, Jason T., 2022. "Predicting participation in the child care subsidy system from provider features, community characteristics, and use of funding streams," Children and Youth Services Review, Elsevier, vol. 136(C).
    2. Deana Grobe & Elizabeth E. Davis & Ellen K. Scott & Roberta B. Weber, 2017. "Using Policy-Relevant Administrative Data in Mixed Methods: A Study of Employment Instability and Parents’ Use of Child Care Subsidies," Journal of Family and Economic Issues, Springer, vol. 38(1), pages 146-162, March.
    3. Kim, Jaeseung & Henly, Julia R., 2021. "Dynamics of child care subsidy use and material hardship," Children and Youth Services Review, Elsevier, vol. 124(C).
    4. Sullivan, Amanda L. & Farnsworth, Elyse M. & Susman-Stillman, Amy, 2018. "Patterns and predictors of childcare subsidies for children with and without special needs," Children and Youth Services Review, Elsevier, vol. 88(C), pages 218-228.
    5. Maguire-Jack, Kathryn & Hardi, Felicia & Stormer, Bri & Lee, Joyce Y. & Feely, Megan & Rostad, Whitney & Ford, Derek C. & Merrick, Melissa T. & Murphy, Catherine A. & Bart. Klika, J., 2022. "Early childhood education and care policies in the U.S. And their impact on family violence," Children and Youth Services Review, Elsevier, vol. 142(C).
    6. Slicker, Gerilyn & Tang, Jing & Kelly, Cara L., 2020. "Workforce-, classroom- and program- level predictors of quality in infant and toddler programs: How subsidized programs compare with other center-based programs," Children and Youth Services Review, Elsevier, vol. 119(C).
    7. Polavarapu, Mounika & Williamson, Alexandria A & Krause, Donnamarie & Jordan, Timothy R., 2023. "Vocational success among at-risk, low-income young adults: Are there contributing factors?," Children and Youth Services Review, Elsevier, vol. 146(C).
    8. Elizabeth L. Doran & Ann P. Bartel & Jane Waldfogel, 2018. "Gender in the Labor Market: The Role of Equal Opportunity and Family-Friendly Policies," NBER Working Papers 25378, National Bureau of Economic Research, Inc.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Müller, Kai-Uwe & Wrohlich, Katharina, 2020. "Does subsidized care for toddlers increase maternal labor supply? Evidence from a large-scale expansion of early childcare," Labour Economics, Elsevier, vol. 62(C).
    2. Elizabeth E. Davis & Caroline Carlin & Caroline Krafft & Nicole D. Forry, 2018. "Do Child Care Subsidies Increase Employment Among Low-Income Parents?," Journal of Family and Economic Issues, Springer, vol. 39(4), pages 662-682, December.
    3. Chris Herbst, 2010. "The labor supply effects of child care costs and wages in the presence of subsidies and the earned income tax credit," Review of Economics of the Household, Springer, vol. 8(2), pages 199-230, June.
    4. Tekin, Erdal, 2005. "Child care subsidy receipt, employment, and child care choices of single mothers," Economics Letters, Elsevier, vol. 89(1), pages 1-6, October.
    5. Müller, Kai-Uwe & Wrohlich, Katharina & Sengül, Denise, 2016. "Does subsidized care for toddlers increase maternal labor supply? Evidence from a large-scale expansion of early childcare," VfS Annual Conference 2016 (Augsburg): Demographic Change 145654, Verein für Socialpolitik / German Economic Association.
    6. Yusuf Emre Akgunduz & Janneke Plantenga, 2018. "Child Care Prices And Maternal Employment: A Meta†Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 32(1), pages 118-133, February.
    7. Y.E. Akgündüz & J. Plantenga, 2015. "Childcare Prices and Maternal Employment: a Meta-Analysis," Working Papers 15-14, Utrecht School of Economics.
    8. David Blau, 2003. "Child Care Subsidy Programs," NBER Chapters, in: Means-Tested Transfer Programs in the United States, pages 443-516, National Bureau of Economic Research, Inc.
    9. Herbst, Chris M., 2022. "Child Care in the United States: Markets, Policy, and Evidence," IZA Discussion Papers 15547, Institute of Labor Economics (IZA).
    10. Blau, David & Currie, Janet, 2006. "Pre-School, Day Care, and After-School Care: Who's Minding the Kids?," Handbook of the Economics of Education, in: Erik Hanushek & F. Welch (ed.), Handbook of the Economics of Education, edition 1, volume 2, chapter 20, pages 1163-1278, Elsevier.
    11. Herbst, Chris M. & Tekin, Erdal, 2010. "The Impact of Child Care Subsidies on Child Well-Being: Evidence from Geographic Variation in the Distance to Social Service Agencies," IZA Discussion Papers 5102, Institute of Labor Economics (IZA).
    12. Chris M. Herbst, 2023. "Child Care In The United States: Markets, Policy, And Evidence," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 42(1), pages 255-304, January.
    13. Markowitz, Anna J. & Ryan, Rebecca M. & Johnson, Anna D., 2014. "Child care subsidies and child care choices: The moderating role of household structure," Children and Youth Services Review, Elsevier, vol. 36(C), pages 230-240.
    14. Chris Herbst & Burt Barnow, 2008. "Close to Home: A Simultaneous Equations Model of the Relationship Between Child Care Accessibility and Female Labor Force Participation," Journal of Family and Economic Issues, Springer, vol. 29(1), pages 128-151, March.
    15. Zanoni Wladimir & Weinberger Gabriel, 2015. "Effects of Childcare Subsidies on Employment and Earnings of Low-Income Mothers," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(2), pages 589-619, April.
    16. Herbst, Chris M. & Tekin, Erdal, 2011. "Do child care subsidies influence single mothers' decision to invest in human capital?," Economics of Education Review, Elsevier, vol. 30(5), pages 901-912, October.
    17. Herbst, Chris M. & Tekin, Erdal, 2010. "Child care subsidies and child development," Economics of Education Review, Elsevier, vol. 29(4), pages 618-638, August.
    18. Christoph Zangger & Janine Widmer & Sandra Gilgen, 2021. "Work, Childcare, or Both? Experimental Evidence on the Efficacy of Childcare Subsidies in Raising Parental Labor Supply," Journal of Family and Economic Issues, Springer, vol. 42(3), pages 449-472, September.
    19. Herbst, Chris M. & Tekin, Erdal, 2012. "The geographic accessibility of child care subsidies and evidence on the impact of subsidy receipt on childhood obesity," Journal of Urban Economics, Elsevier, vol. 71(1), pages 37-52.
    20. Taryn W. Morrissey, 2017. "Child care and parent labor force participation: a review of the research literature," Review of Economics of the Household, Springer, vol. 15(1), pages 1-24, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:cysrev:v:59:y:2015:i:c:p:139-148. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/childyouth .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.