IDEAS home Printed from https://ideas.repec.org/a/eee/ecoedu/v30y2011i5p901-912.html
   My bibliography  Save this article

Do child care subsidies influence single mothers' decision to invest in human capital?

Author

Listed:
  • Herbst, Chris M.
  • Tekin, Erdal

Abstract

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.

Suggested Citation

  • Herbst, Chris M. & Tekin, Erdal, 2011. "Do child care subsidies influence single mothers' decision to invest in human capital?," Economics of Education Review, Elsevier, vol. 30(5), pages 901-912, October.
  • Handle: RePEc:eee:ecoedu:v:30:y:2011:i:5:p:901-912
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0272775711000495
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Erdal Tekin, 2007. "Single Mothers Working At Night: Standard Work And Child Care Subsidies," Economic Inquiry, Western Economic Association International, vol. 45(2), pages 233-250, April.
    2. Herbst, Chris M. & Tekin, Erdal, 2010. "Child care subsidies and child development," Economics of Education Review, Elsevier, vol. 29(4), pages 618-638, August.
    3. 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.
    4. Erdal Tekin, 2007. "Childcare Subsidies, Wages, and Employment of Single Mothers," Journal of Human Resources, University of Wisconsin Press, vol. 42(2).
    5. Herbst, Chris M., 2008. "Who are the eligible non-recipients of child care subsidies?," Children and Youth Services Review, Elsevier, vol. 30(9), pages 1037-1054, September.
    6. Chris Herbst, 2010. "The labor supply effects of child care costs and wages in the presence of subsidies and the earned income tax credit," Review of Economics of the Household, Springer, vol. 8(2), pages 199-230, June.
    7. 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 of Labor Economics (IZA).
    8. Tekin, Erdal, 2005. "Child care subsidy receipt, employment, and child care choices of single mothers," Economics Letters, Elsevier, vol. 89(1), pages 1-6, October.
    9. 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.
    10. 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.
    11. 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.
    12. LaDonna Pavetti & Gregory Acs, 2001. "Moving Up, Moving Out, or Going Nowhere? A Study of the Employment Patterns of Young Women and the Implications for Welfare Mothers," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 20(4), pages 721-736.
    13. Paul M. Ong, 2002. "Car ownership and welfare-to-work," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 21(2), pages 239-252.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chris Herbst & Erdal Tekin, 2012. "Child Care Subsidies, Maternal Well-Being, and Child-Parent Interactions: Evidence from Three Nationally Representative Datasets," Working Papers 1372, Princeton University, School of Public and International Affairs, Center for Research on Child Wellbeing..
    2. Guarini, Giulio & Laureti, Tiziana & Garofalo, Giuseppe, 2020. "Socio-institutional determinants of educational resource efficiency according to the capability approach: An endogenous stochastic frontier analysis," Socio-Economic Planning Sciences, Elsevier, vol. 71(C).
    3. repec:pri:crcwel:wp12-01-ff is not listed on IDEAS
    4. Herbst, Chris M. & Tekin, Erdal, 2012. "The geographic accessibility of child care subsidies and evidence on the impact of subsidy receipt on childhood obesity," Journal of Urban Economics, Elsevier, vol. 71(1), pages 37-52.
    5. repec:pri:crcwel:wp11-20-ff is not listed on IDEAS
    6. Chris M. Herbst & Erdal Tekin, 2014. "Child Care Subsidies, Maternal Health, And Child–Parent Interactions: Evidence From Three Nationally Representative Datasets," Health Economics, John Wiley & Sons, Ltd., vol. 23(8), pages 894-916, August.
    7. Elizabeth E. Davis & Caroline Carlin & Caroline Krafft & Nicole D. Forry, 2018. "Do Child Care Subsidies Increase Employment Among Low-Income Parents?," Journal of Family and Economic Issues, Springer, vol. 39(4), pages 662-682, December.
    8. Owen N. Schochet & Anna D. Johnson, 2019. "The Impact of Child Care Subsidies on Mothers’ Education Outcomes," Journal of Family and Economic Issues, Springer, vol. 40(3), pages 367-389, September.
    9. Erdal Tekin, 2014. "Childcare subsidy policy: What it can and cannot accomplish," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-43, July.
    10. Lin Zhang, 2021. "Education Expenditure and Parenting Styles: Evidence from Cognitive Development in China," Journal of Family and Economic Issues, Springer, vol. 42(4), pages 729-744, December.
    11. Struffolino, Emanuela & Mortelmans, Dimitri, 2018. "Lone Mothers in Belgium: Labor Force Attachment and Risk Factors," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 257-282.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Elizabeth E. Davis & Caroline Carlin & Caroline Krafft & Nicole D. Forry, 2018. "Do Child Care Subsidies Increase Employment Among Low-Income Parents?," Journal of Family and Economic Issues, Springer, vol. 39(4), pages 662-682, December.
    2. Herbst, Chris M. & Tekin, Erdal, 2012. "The geographic accessibility of child care subsidies and evidence on the impact of subsidy receipt on childhood obesity," Journal of Urban Economics, Elsevier, vol. 71(1), pages 37-52.
    3. Chris Herbst & Erdal Tekin, 2012. "Child Care Subsidies, Maternal Well-Being, and Child-Parent Interactions: Evidence from Three Nationally Representative Datasets," Working Papers 1372, Princeton University, School of Public and International Affairs, Center for Research on Child Wellbeing..
    4. Chris M. Herbst & Erdal Tekin, 2014. "Child Care Subsidies, Maternal Health, And Child–Parent Interactions: Evidence From Three Nationally Representative Datasets," Health Economics, John Wiley & Sons, Ltd., vol. 23(8), pages 894-916, August.
    5. 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 of Labor Economics (IZA).
    6. Herbst, Chris M., 2013. "Universal Child Care, Maternal Employment, and Children's Long-Run Outcomes: Evidence from the U.S. Lanham Act of 1940," IZA Discussion Papers 7846, Institute of Labor Economics (IZA).
    7. Herbst, Chris M. & Tekin, Erdal, 2010. "Child care subsidies and child development," Economics of Education Review, Elsevier, vol. 29(4), pages 618-638, August.
    8. Johnson, Anna D. & Herbst, Chris M., 2013. "Can we trust parental reports of child care subsidy receipt?," Children and Youth Services Review, Elsevier, vol. 35(6), pages 984-993.
    9. Sandra E. Black & Paul J. Devereux & Katrine V. L�ken & Kjell G. Salvanes, 2014. "Care or Cash? The Effect of Child Care Subsidies on Student Performance," The Review of Economics and Statistics, MIT Press, vol. 96(5), pages 824-837, December.
    10. Christoph Zangger & Janine Widmer & Sandra Gilgen, 2021. "Work, Childcare, or Both? Experimental Evidence on the Efficacy of Childcare Subsidies in Raising Parental Labor Supply," Journal of Family and Economic Issues, Springer, vol. 42(3), pages 449-472, September.
    11. Müller, Kai-Uwe & Wrohlich, Katharina, 2020. "Does subsidized care for toddlers increase maternal labor supply? Evidence from a large-scale expansion of early childcare," Labour Economics, Elsevier, vol. 62(C).
    12. Ha, Yoonsook & Miller, Daniel P., 2015. "Child care subsidies and employment outcomes of low-income families," Children and Youth Services Review, Elsevier, vol. 59(C), pages 139-148.
    13. Chris Herbst & Erdal Tekin, 2011. "Child care subsidies and childhood obesity," Review of Economics of the Household, Springer, vol. 9(3), pages 349-378, September.
    14. repec:pri:crcwel:wp11-20-ff is not listed on IDEAS
    15. repec:pri:crcwel:wp12-01-ff is not listed on IDEAS
    16. Zanoni Wladimir & Weinberger Gabriel, 2015. "Effects of Childcare Subsidies on Employment and Earnings of Low-Income Mothers," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(2), pages 589-619, April.
    17. 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.
    18. Randy Albelda & Michael Carr, 2017. "One Step Forward, One Step Back? Labor Supply Effects of Minimum Wage Increases on Single Parents with Public Child Care Support," Working Papers 2017_01, University of Massachusetts Boston, Economics Department.
    19. Ahn, Haksoon, 2012. "Child care subsidy, child care costs, and employment of low-income single mothers," Children and Youth Services Review, Elsevier, vol. 34(2), pages 379-387.
    20. Julio J. Guzman, 2019. "The demand for child care subsidies under rationing," Review of Economics of the Household, Springer, vol. 17(4), pages 1349-1379, December.
    21. Yusuf Emre Akgunduz & Janneke Plantenga, 2018. "Child Care Prices And Maternal Employment: A Meta†Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 32(1), pages 118-133, February.
    22. Taryn W. Morrissey, 2017. "Child care and parent labor force participation: a review of the research literature," Review of Economics of the Household, Springer, vol. 15(1), pages 1-24, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecoedu:v:30:y:2011:i:5:p:901-912. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.elsevier.com/locate/econedurev .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/econedurev .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.