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The Determinants and Consequences of Child Care Subsidies for Single Mothers

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Author Info

  • Blau, David M.

    ()
    (Ohio State University)

  • Tekin, Erdal

    ()
    (American University)

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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Bibliographic 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: 44 pages
Date of creation: Oct 2001
Date of revision:
Publication status: published in: Journal of Population Economics, 2007, 20 (4), 719 - 741
Handle: RePEc:iza:izadps:dp383

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Keywords: child care subsidy; Welfare reform; employment;

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References

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  1. 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.
  2. James J. Heckman, 1999. "Instrumental Variables: Response to Angrist and Imbens," Journal of Human Resources, University of Wisconsin Press, vol. 34(4), pages 828-837.
  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.
  4. Marcia Meyers & Theresa Heintze & Douglas Wolf, 2002. "Child care subsidies and the employment of welfare recipients," Demography, Springer, Springer, vol. 39(1), pages 165-179, February.
  5. Jonah B. Gelbach, 2002. "Public Schooling for Young Children and Maternal Labor Supply," American Economic Review, American Economic Association, American Economic Association, vol. 92(1), pages 307-322, March.
  6. Robins, Philip K & Spiegelman, Robert G, 1978. "An Econometric Model of the Demand for Child Care," Economic Inquiry, Western Economic Association International, Western Economic Association International, vol. 16(1), pages 83-94, January.
  7. Patricia M. Anderson & Phillip B. Levine, 1999. "Child Care and Mothers' Employment Decisions," JCPR Working Papers, Northwestern University/University of Chicago Joint Center for Poverty Research 64, Northwestern University/University of Chicago Joint Center for Poverty Research.
  8. Angrist, Joshua D. & Krueger, Alan B., 1999. "Empirical strategies in labor economics," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 23, pages 1277-1366 Elsevier.
  9. David Blau, 2003. "Child Care Subsidy Programs," NBER Chapters, National Bureau of Economic Research, Inc, in: Means-Tested Transfer Programs in the United States, pages 443-516 National Bureau of Economic Research, Inc.
  10. James Heckman, 1997. "Instrumental Variables: A Study of Implicit Behavioral Assumptions Used in Making Program Evaluations," Journal of Human Resources, University of Wisconsin Press, vol. 32(3), pages 441-462.
  11. Rebecca M. Blank, 2002. "Evaluating Welfare Reform in the United States," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 40(4), pages 1105-1166, December.
  12. 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.
  13. Joshua D. Angrist & Guido W. Imbens, 1999. "Comment on James J. Heckman, "Instrumental Variables: A Study of Implicit Behavioral Assumptions Used in Making Program Evaluations"," Journal of Human Resources, University of Wisconsin Press, vol. 34(4), pages 823-827.
  14. David M. Blau & Alison P. Hagy, 1998. "The Demand for Quality in Child Care," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 106(1), pages 104-146, February.
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Citations

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Cited by:
  1. C. Katharina Spieß, 2011. "Vereinbarkeit von Familie und Beruf – wie wirksam sind deutsche „Care Policies“?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, Verein für Socialpolitik, vol. 12(s1), pages 4-27, 05.
  2. Pablo D. López Zadicoff & Jorge A. Paz, 2003. "El Programa Jefes de Hogar. Eligibilidad, participación y trabajo," CEMA Working Papers: Serie Documentos de Trabajo., Universidad del CEMA 242, Universidad del CEMA.
  3. Robert J. Lemke & Robert Witt & Ann Dryden White, 2007. "The Transition from Welfare to Work," Eastern Economic Journal, Eastern Economic Association, Eastern Economic Association, vol. 33(3), pages 359-373, Summer.
  4. Beissinger, Thomas, 2002. "The Impact of Labor Market Reforms on Capital Flows, Wages and Unemployment," Royal Economic Society Annual Conference 2002, Royal Economic Society 18, Royal Economic Society.
  5. Ashlesha Datar, 2006. "The impact of kindergarten entrance age policies on the childcare needs of families," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 25(1), pages 129-153.
  6. Tekin, Erdal, 2004. "Child Care Subsidy Receipt, Employment, and Child Care Choices of Single Mothers," IZA Discussion Papers 1121, Institute for the Study of Labor (IZA).
  7. Peter R. Mueser & Christopher T. King, 2004. "Welfare and Work in the 1990s: Experiences in Six Cities," Working Papers, Department of Economics, University of Missouri 0409, Department of Economics, University of Missouri, revised 20 Oct 2004.
  8. David M. Blau, 2000. "Child Care Subsidy Programs," NBER Working Papers 7806, National Bureau of Economic Research, Inc.
  9. Maria Fitzpatrick, 2008. "Preschoolers Enrolled and Mothers at Work? The Effects of Universal Pre-Kindergarten," Discussion Papers, Stanford Institute for Economic Policy Research 08-001, Stanford Institute for Economic Policy Research.
  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, Elsevier, Elsevier.

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