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The Impact of Child‐Care Subsidies on Child Development: Evidence from Geographic Variation in the Distance to Social Service Agencies

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  • Chris M. Herbst
  • Erdal Tekin

Abstract

In this paper, we examine the impact of U.S. child‐care subsidies on the cognitive and behavioral development of children in low‐income female‐headed families. We identify the effect of subsidy receipt by exploiting geographic variation in the distance that families must travel from home to reach the nearest social service agency that administers the subsidy application process. Using data from the Kindergarten cohort of the Early Childhood Longitudinal Study, our instrumental variables estimates suggest that children receiving subsidized child care in the year before kindergarten score lower on tests of cognitive ability and reveal more behavior problems throughout kindergarten. An auxiliary analysis of longer‐run outcomes shows that these negative effects largely disappear by the time children finish first grade.

Suggested Citation

  • Chris M. Herbst & Erdal Tekin, 2016. "The Impact of Child‐Care Subsidies on Child Development: Evidence from Geographic Variation in the Distance to Social Service Agencies," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 35(1), pages 94-116, January.
    • Handle: RePEc:wly:jpamgt:v:35:y:2016:i:1:p:94-116
    DOI: 10.1002/pam.21860
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    Cited by:

    1. Herbst, Chris M., 2018. "The rising cost of child care in the United States: A reassessment of the evidence," Economics of Education Review, Elsevier, vol. 64(C), pages 13-30.
    2. Brown, Jessica H. & Herbst, Chris M., 2023. "Minimum Wage, Worker Quality, and Consumer Well-Being: Evidence from the Child Care Market," IZA Discussion Papers 16257, Institute of Labor Economics (IZA).
    3. Chris M. Herbst, 2023. "Child Care In The United States: Markets, Policy, And Evidence," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 42(1), pages 255-304, January.
    4. Ali, Umair & Herbst, Chris M. & Makridis, Christos A., 2021. "The impact of COVID-19 on the U.S. child care market: Evidence from stay-at-home orders," Economics of Education Review, Elsevier, vol. 82(C).
    5. Natasha V. Pilkauskas & Katherine Michelmore, 2023. "Who’s Caring for the Kids? The Earned Income Tax Credit and Childcare Arrangements," The ANNALS of the American Academy of Political and Social Science, , vol. 706(1), pages 37-64, March.
    6. Herbst, Chris M. & Tekin, Erdal, 2025. "Reproductive Technology and the Child Care Sector: How Access to Oral Contraception and Abortion Shaped Workforce Composition and Quality," IZA Discussion Papers 17725, Institute of Labor Economics (IZA).
    7. Herbst, Chris M., 2018. "The impact of quality rating and improvement systems on families’ child care choices and the supply of child care labor," Labour Economics, Elsevier, vol. 54(C), pages 172-190.
    8. Brown, Jessica H. & Herbst, Chris M., 2021. "Child Care over the Business Cycle," IZA Discussion Papers 14048, Institute of Labor Economics (IZA).
    9. Bullinger, Lindsey Rose & Fleckman, Julia M. & Fong, Kelley, 2021. "Proximity to SNAP-authorized retailers and child maltreatment reports," Economics & Human Biology, Elsevier, vol. 42(C).
    10. Gordon, James A. & Herbst, Chris M. & Tekin, Erdal, 2021. "Who's minding the kids? Experimental evidence on the demand for child care quality," Economics of Education Review, Elsevier, vol. 80(C).
    11. Herbst, Chris M., 2022. "Child Care in the United States: Markets, Policy, and Evidence," IZA Discussion Papers 15547, Institute of Labor Economics (IZA).
    12. 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).
    13. 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.

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