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The Determinants and Consequences of Child Care Subsidies for Single Mothers

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Author Info
Blau, David (Department of Economics, University of North Carolina, Chapel Hill)
Tekin, Erdal () (Department of Economics, Georgia State University and IZA, Bonn)

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Abstract

This paper provides an early analysis of child care subsidies under welfare reform. Previous studies of child care subsidies use data from the pre-welfare-reform period, and their results may not apply to the very different post-reform environment. We use data from the 1997 National Survey of America’s Families to analyze the determinants of receipt of a child care subsidy and the effects of subsidy receipt on employment, school attendance, job search, and welfare participation. We analyze the impact on subsidy receipt of household characteristics such as family size and structure, and past participation in welfare. Ordinary least squares estimates show positive and significant effects of subsidy receipt on employment, school enrollment, and welfare participation. Two stage least squares estimates that treat subsidy receipt as endogenous and use county dummies as identifying instruments show much less evidence that subsidy receipt affects these outcomes.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 383.

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Length: 43 pages
Date of creation: Oct 2001
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Handle: RePEc:iza:izadps:dp383

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Related research
Keywords: Welfare reform; child care subsidy; employment;

Other versions of this item:

Find related papers by JEL classification:
J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. 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. [Downloadable!] (restricted)
  2. 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. [Downloadable!]
    Other versions:
  3. Robert J. Lemke & Ann Dryden Witte & Magaly Queralt & Robert Witt, 2000. "Child Care and the Welfare to Work Transition," NBER Working Papers 7583, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Rebecca M. Blank, 2002. "Evaluating Welfare Reform in the United States," Journal of Economic Literature, American Economic Association, vol. 40(4), pages 1105-1166, December.
    Other versions:
  5. 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. [Downloadable!] (restricted)
  6. 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. [Downloadable!]
  7. 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. [Downloadable!] (restricted)
  8. Angrist, Joshua D. & Krueger, Alan B., 1999. "Empirical strategies in labor economics," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 23, pages 1277-1366 Elsevier. [Downloadable!] (restricted)
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  9. Robins, Philip K & Spiegelman, Robert G, 1978. "An Econometric Model of the Demand for Child Care," Economic Inquiry, Oxford University Press, vol. 16(1), pages 83-94, January.
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Robert J. Lemke & Robert J. Witt & Ann Dryden Witte, 2004. "The Transition from Welfare to Work," Department of Economics Discussion Papers 0504, Department of Economics, University of Surrey. [Downloadable!]
    Other versions:
  2. Erdal Tekin, 2004. "Child Care Subsidy Receipt, Employment, and Child Care Choices of Single Mothers," NBER Working Papers 10459, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Beissinger, Thomas, 2001. "The Impact of Labor Market Reforms on Capital Flows, Wages and Unemployment," IZA Discussion Papers 390, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Pablo D. López Zadicoff & Jorge A. Paz, 2003. "El Programa Jefes de Hogar. Eligibilidad, participación y trabajo," CEMA Working Papers: Serie Documentos de Trabajo. 242, Universidad del CEMA. [Downloadable!]
  5. Peter R. Mueser & Christopher T. King, 2004. "Welfare and Work in the 1990s: Experiences in Six Cities," Working Papers 0409, Department of Economics, University of Missouri, revised 20 Oct 2004. [Downloadable!]
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