This paper estimates the effect of child care subsidies on the standard work decision of single mothers and examines whether this effect differs between welfare recipients and nonrecipients. The analysis uses data from the 1999 National Survey of America's Families. Results suggest that child care subsidy receipt is associated with a 6.9 percentage point increase in the probability of single mothers' working at standard jobs. When the effect of subsidy receipt is allowed to differ between welfare recipients and nonrecipients, results indicate that welfare recipients who are offered a child care subsidy are 14 percentage points more likely to work at standard jobs than others. Among nonrecipients, child care subsidy receipt increases standard work probability by only 1.8 percentage point. These findings underscore the important role of child care subsidies in helping low income parents, especially welfare recipients, find jobs with conventional or standard schedules. The results also lend support to the policy of giving priority to welfare recipients for child care subsidies. Results are found to be robust to several specification checks.
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Paper provided by W.E. Upjohn Institute for Employment Research in its series Staff Working Papers with number
05-113.
Length: Date of creation: Sep 2004 Date of revision: Handle: RePEc:upj:weupjo:05-113
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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.:
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.
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