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Single Mothers Working at Night: Standard Work, Child Care Subsidies, and Implications for Welfare Reform

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  • Tekin, Erdal

    ()
    (American University)

Abstract

Using a data set from the post welfare reform environment (the 1999 National Survey of America’s Families), this paper investigates the impact of child care subsidies on the standard work (i.e., work performed during the traditional work hours of 8 a.m. and 6 p.m. through Monday and Friday) decision of single mothers and tests whether this impact differs between welfare recipients and nonrecipients. The econometric strategy accounts for sample selection into the labor force and the potential endogeneity of child care subsidy receipt and welfare participation. Results suggest that child care subsidies are associated with a 6 percentage point increase in the probability of single mothers working at standard jobs. When the impact of subsidies is allowed to differ between welfare recipients and non-recipients, results indicate that welfare recipients are 14 percentage points more likely to work at standard jobs than others when they are offered a child care subsidy. Among non-recipients, child care subsidies increase standard work probability by only 1 percentage point. These results underscore the importance of child care subsidies helping low-income parents, especially welfare recipients, find jobs with conventional or standard schedules and lend support to the current practice of states’ giving priority to welfare recipients for child care subsidies. Results are found to be robust to numerous specification checks.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1014.

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Length: 44 pages
Date of creation: Feb 2004
Date of revision:
Publication status: published in: Economic Inquiry, 2007, 45 (2), 233-250
Handle: RePEc:iza:izadps:dp1014

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Keywords: single mothers; standard work; child care subsidies; welfare;

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References

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  1. Jonah B. Gelbach, 2002. "Public Schooling for Young Children and Maternal Labor Supply," American Economic Review, American Economic Association, vol. 92(1), pages 307-322, March.
  2. Ellen Eliason Kisker & Anu Rangarajan & Kimberly Boller, 1998. "Moving into Adulthood: Were the Impacts of Mandatory Programs for Welfare-Dependent Teenage Parents Sustained After the Programs Ended?," Mathematica Policy Research Reports 1852, Mathematica Policy Research.
  3. Rebecca M. Blank, 2002. "Evaluating Welfare Reform in the United States," NBER Working Papers 8983, National Bureau of Economic Research, Inc.
  4. Marcia Meyers & Theresa Heintze & Douglas Wolf, 2002. "Child care subsidies and the employment of welfare recipients," Demography, Springer, vol. 39(1), pages 165-179, February.
  5. David M. Blau, 2000. "Child Care Subsidy Programs," NBER Working Papers 7806, National Bureau of Economic Research, Inc.
  6. Patricia M. Anderson & Philip B. Levine, 1999. "Child Care and Mothers' Employment Decisions," NBER Working Papers 7058, National Bureau of Economic Research, Inc.
  7. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
  8. Lynne Casper & Martin O’Connell, 1998. "Work, income, the economy, and married fathers as child-care providers," Demography, Springer, vol. 35(2), pages 243-250, May.
  9. Jean Kimmel & Lisa Powell, 2001. "Nonstandard Work and Child Care Choices of Married Mothers," Upjohn Working Papers and Journal Articles 01-74, W.E. Upjohn Institute for Employment Research.
  10. Mocan, Naci & Tekin, Erdal, 2001. "Nonprofit Sector and Part-Time Work: An Analysis of Employer-Employee Matched Data of Child Care Workers," IZA Discussion Papers 408, Institute for the Study of Labor (IZA).
  11. Mroz, Thomas A., 1999. "Discrete factor approximations in simultaneous equation models: Estimating the impact of a dummy endogenous variable on a continuous outcome," Journal of Econometrics, Elsevier, vol. 92(2), pages 233-274, October.
  12. Jeffrey Grogger, 2003. "The Effects of Time Limits, the EITC, and Other Policy Changes on Welfare Use, Work, and Income among Female-Headed Families," The Review of Economics and Statistics, MIT Press, vol. 85(2), pages 394-408, May.
  13. 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 635-42, November.
  14. David M. Blau & Alison P. Hagy, 1998. "The Demand for Quality in Child Care," Journal of Political Economy, University of Chicago Press, vol. 106(1), pages 104-146, February.
  15. Gabriel A. Picone & Frank A. Sloan & Shin-Yi Chou & Donald H. Taylor, 2003. "Does Higher Hospital Cost Imply Higher Quality of Care?," The Review of Economics and Statistics, MIT Press, vol. 85(1), pages 51-62, February.
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Cited by:
  1. Robert J. Lemke & Robert Witt & Ann Dryden White, 2007. "The Transition from Welfare to Work," Eastern Economic Journal, Eastern Economic Association, vol. 33(3), pages 359-373, Summer.
  2. Herbst, Chris M. & Tekin, Erdal, 2008. "Child Care Subsidies and Child Development," IZA Discussion Papers 3836, Institute for the Study of Labor (IZA).
  3. Herbst, Chris M. & Tekin, Erdal, 2011. "The Geographic Accessibility of Child Care Subsidies and Evidence on the Impact of Subsidy Receipt on Childhood Obesity," IZA Discussion Papers 6025, Institute for the Study of Labor (IZA).
  4. 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.
  5. Mandler, Martin, 2009. "In search of robust monetary policy rules - Should the Fed look at money growth or stock market performance?," Journal of Macroeconomics, Elsevier, vol. 31(2), pages 345-361, June.

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