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The Impact of Federal Nutrition Support for Infants and Young Children on Home Daycare Services

Author

Listed:
  • Powers, Elizabeth

    (University of Illinois Urbana-Champaign)

  • Zou, Jian

    (Cornell University)

Abstract

Many small, home-based, childcare businesses participate in the Child and Adult Care Food Program (CACFP). This large but little-studied federal program provides fixed reimbursements for food costs to support nutrient-dense meals and snacks for young children in out-of-home care. We use unique, richly detailed administrative data and a policy reform that exogenously increased some providers’ reimbursements to estimate causal effects of CACFP on childcare services. An own-price effect on food service, a positive effect on complementary services, and a possible pass-through of reimbursements in prices are predicted. There is suggestive evidence of price increases for the care of very young children and for before-and-after-school care. We fail to find significant effects on indicators of provider quality. In a heterogeneity analysis, there are no differences in response by child poverty. In contrast, significant findings on dinner and duration in the sample are driven by the non-rural providers. Overall, CACFP may especially benefit low-income households by increasing opportunities to receive subsidized food away from home and better accommodating lengthy work days and nonstandard schedules.

Suggested Citation

  • Powers, Elizabeth & Zou, Jian, 2026. "The Impact of Federal Nutrition Support for Infants and Young Children on Home Daycare Services," IZA Discussion Papers 18872, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp18872
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    References listed on IDEAS

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    1. David M. Blau, 2003. "Do child care regulations affect the child care and labor markets?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 22(3), pages 443-465.
    2. Marcus, Michelle & Yewell, Katherine G., 2022. "The Effect of Free School Meals on Household Food Purchases: Evidence from the Community Eligibility Provision," Journal of Health Economics, Elsevier, vol. 84(C).
    3. 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.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

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    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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