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The Effects of the Child Care Tax Credit on Maternal Labor Supply

Author

Listed:
  • Haibin Jiang

    (Tulane Economics and Murphy Institute)

Abstract

The Child Care Tax credit (CCTC) is a child care subsidy pro- gram that allows working parents to claim a tax credit for their child care expenses. I document a comprehensive legislative history of the CCTC at both federal and state levels. Using the exogenous CCTC law changes and focusing on working-age mothers from the Panel Study of Income Dynamics, I use differences-in-differences, triple-differences, and instrumental variables methods to estimate the effects of the CCTC on maternal labor supply. I find that the CCTC significantly increases maternal labor force participation and the effects are more pronounced in married mothers than single mothers.

Suggested Citation

  • Haibin Jiang, 2020. "The Effects of the Child Care Tax Credit on Maternal Labor Supply," Working Papers 2015, Tulane University, Department of Economics.
    • Handle: RePEc:tul:wpaper:2015
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    References listed on IDEAS

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    Cited by:

    1. Averett, Susan L. & Wang, Yang, 2023. "Assessing the Fertility Effects of Childcare Cost Subsidies: Evidence from the Child and Dependent Care Tax Credit," IZA Discussion Papers 16263, Institute of Labor Economics (IZA).
    2. Haibin Jiang, 2020. "The effect of the Child Care Tax Credit on Children’s Long-term Educational Achievement," Working Papers 2016, Tulane University, Department of Economics.

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    More about this item

    Keywords

    The Child Care Tax Credit; Maternal Labor Supply; Differences-in-differences; Instrumental Variables.;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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