Do child care subsidies influence single mothers' decision to invest in human capital?
A child care subsidy is one of the most effective policy instruments to facilitate low-income individuals' transition from welfare to work. Although previous studies consistently find that subsidy receipt is associated with increased employment among single mothers, there is currently no evidence on the influence of these benefits on the decision to invest in human capital. Using data from the Kindergarten cohort of the Early Childhood Longitudinal Study, this paper examines the impact of child care subsidy receipt on the likelihood of engaging in education and job training activities. We identify the impact of subsidy receipt by exploiting plausibly exogenous geographic variation in the distance that parents must travel from home in order to reach the nearest social service agency that administers the subsidy application process. Results suggest that child care subsidies encourage single mothers to engage in human capital investment. In particular, our instrumental variables estimates imply that subsidy receipt increases the likelihood that a single mother enrolls in courses at a school or university by 13 percentage points and participates in a job training program by 8 percentage points.
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- 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.
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- Chris M. Herbst & Erdal Tekin, 2008.
"Child Care Subsidies and Child Development,"
NBER Working Papers
14474, National Bureau of Economic Research, Inc.
- Herbst, Chris M. & Tekin, Erdal, 2010.
"The Impact of Child Care Subsidies on Child Well-Being: Evidence from Geographic Variation in the Distance to Social Service Agencies,"
IZA Discussion Papers
5102, Institute for the Study of Labor (IZA).
- Chris M. Herbst & Erdal Tekin, 2010. "The Impact of Child Care Subsidies on Child Well-Being: Evidence from Geographic Variation in the Distance to Social Service Agencies," Working Papers id:2739, eSocialSciences.
- Chris M. Herbst & Erdal Tekin, 2010. "The Impact of Child Care Subsidies on Child Well-Being: Evidence from Geographic Variation in the Distance to Social Service Agencies," NBER Working Papers 16250, National Bureau of Economic Research, Inc.
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"Child Care Subsidies, Wages, And Employment of Single Mothers,"
Royal Economic Society Annual Conference 2003
200, Royal Economic Society.
- Erdal Tekin, 2007. "Childcare Subsidies, Wages, and Employment of Single Mothers," Journal of Human Resources, University of Wisconsin Press, vol. 42(2).
- Tekin, Erdal, 2002. "Child Care Subsidies, Wages, and Employment of Single Mothers," IZA Discussion Papers 517, Institute for the Study of Labor (IZA).
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- David Blau & Erdal Tekin, 2007. "The determinants and consequences of child care subsidies for single mothers in the USA," Journal of Population Economics, Springer;European Society for Population Economics, vol. 20(4), pages 719-741, October.
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