IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

The Impact of Child Care Subsidies on Child Well-Being: Evidence from Geographic Variation in the Distance to Social Service Agencies

  • Chris M. Herbst
  • Erdal Tekin

In recent years, child care subsidies have become an integral part of federal and state efforts to move economically disadvantaged parents from welfare to work. Although previous empirical studies consistently show that these employment-related subsidies raise work levels among this group, little is known about the impact of subsidy receipt on child well-being. In this paper, we identify the causal effect of child care subsidies on child development by exploiting geographic variation in the distance that families must travel from home in order 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 care in the year before kindergarten score lower on tests of cognitive ability and reveal more behavior problems throughout kindergarten. However, these negative effects largely disappear by the time children reach the end of third grade. Our results point to an unintended consequence of a child care subsidy regime that conditions eligibility on parental employment and deemphasizes child care quality.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.nber.org/papers/w16250.pdf
Download Restriction: no

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 16250.

as
in new window

Length:
Date of creation: Aug 2010
Date of revision:
Handle: RePEc:nbr:nberwo:16250
Note: CH ED HE
Contact details of provider: Postal:
National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.

Phone: 617-868-3900
Web page: http://www.nber.org
Email:


More information through EDIRC

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.:

as in new window
  1. Samuel Berlinski & Sebastian Galiani & Paul Gertler, 2006. "The Effect of Pre-Primary Education on Primary School Performance," William Davidson Institute Working Papers Series wp838, William Davidson Institute at the University of Michigan.
  2. Berlinski, Samuel & Galiani, Sebastian & Manacorda, Marco, 2008. "Giving children a better start: Preschool attendance and school-age profiles," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1416-1440, June.
  3. Datta Gupta, Nabanita & Simonsen, Marianne, 2007. "Non-Cognitive Child Outcomes and Universal High Quality Child Care," IZA Discussion Papers 3188, Institute for the Study of Labor (IZA).
  4. Ruhm, Christopher J., 2008. "Maternal employment and adolescent development," Labour Economics, Elsevier, vol. 15(5), pages 958-983, October.
  5. Joshua D. Angrist & Guido W. Imbens, 1995. "Identification and Estimation of Local Average Treatment Effects," NBER Technical Working Papers 0118, National Bureau of Economic Research, Inc.
  6. Chris M. Herbst, 2008. "Do social policy reforms have different impacts on employment and welfare use as economic conditions change?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 27(4), pages 867-894.
  7. Currie, Janet & Thomas, Duncan, 1995. "Does Head Start Make a Difference?," American Economic Review, American Economic Association, vol. 85(3), pages 341-64, June.
  8. Fitzpatrick Maria D, 2008. "Starting School at Four: The Effect of Universal Pre-Kindergarten on Children's Academic Achievement," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-40, November.
  9. Marcia Meyers & Theresa Heintze & Douglas Wolf, 2002. "Child care subsidies and the employment of welfare recipients," Demography, Springer;Population Association of America (PAA), vol. 39(1), pages 165-179, February.
  10. Susanne James-Burdumy, 2005. "The Effect of Maternal Labor Force Participation on Child Development," Journal of Labor Economics, University of Chicago Press, vol. 23(1), pages 177-211, January.
  11. Herbst, Chris M. & Tekin, Erdal, 2010. "Child care subsidies and child development," Economics of Education Review, Elsevier, vol. 29(4), pages 618-638, August.
  12. Charles Baum, 2002. "A dynamic analysis of the effect of child care costs on the work decisions of low-income mothers with infants," Demography, Springer;Population Association of America (PAA), vol. 39(1), pages 139-164, February.
  13. Tekin, Erdal, 2004. "Child Care Subsidy Receipt, Employment, and Child Care Choices of Single Mothers," IZA Discussion Papers 1121, Institute for the Study of Labor (IZA).
  14. Blau, Francine D & Grossberg, Adam J, 1992. "Maternal Labor Supply and Children's Cognitive Development," The Review of Economics and Statistics, MIT Press, vol. 74(3), pages 474-81, August.
  15. Scott W. Allard & Richard M. Tolman & Daniel Rosen, 2003. "Proximity to service providers and service utilization among welfare recipients: The interaction of place and race," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 22(4), pages 599-613.
  16. Eliana Garces & Duncan Thomas & Janet Currie, 2000. "Longer Term Effects of Head Start," Working Papers 00-20, RAND Corporation.
  17. David M. Blau, 2003. "Child Care Subsidies as Social Policy," CESifo DICE Report, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 1(4), pages 03-07, October.
  18. Angrist, J D & Imbens, G W & Krueger, A B, 1999. "Jackknife Instrumental Variables Estimation," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(1), pages 57-67, Jan.-Feb..
  19. William T. Gormley, Jr. & Ted Gayer, 2005. "Promoting School Readiness in Oklahoma: An Evaluation of Tulsa's Pre-K Program," Journal of Human Resources, University of Wisconsin Press, vol. 40(3).
  20. Erdal Tekin, 2007. "Childcare Subsidies, Wages, and Employment of Single Mothers," Journal of Human Resources, University of Wisconsin Press, vol. 42(2).
  21. Chris M. Herbst & Erdal Tekin, 2009. "Child Care Subsidies and Childhood Obesity," NBER Working Papers 15007, National Bureau of Economic Research, Inc.
  22. 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.
  23. Magnuson, Katherine A. & Ruhm, Christopher & Waldfogel, Jane, 2007. "Does prekindergarten improve school preparation and performance?," Economics of Education Review, Elsevier, vol. 26(1), pages 33-51, February.
  24. Christopher J. Ruhm, 2004. "Parental Employment and Child Cognitive Development," Journal of Human Resources, University of Wisconsin Press, vol. 39(1).
  25. Bernal, Raquel & Keane, Michael P., 2010. "Quasi-structural estimation of a model of childcare choices and child cognitive ability production," Journal of Econometrics, Elsevier, vol. 156(1), pages 164-189, May.
  26. Anderson, Patricia M. & Butcher, Kristin F. & Levine, Phillip B., 2003. "Maternal employment and overweight children," Journal of Health Economics, Elsevier, vol. 22(3), pages 477-504, May.
  27. 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.
  28. Raquel Bernal, 2008. "The Effect Of Maternal Employment And Child Care On Children'S Cognitive Development," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(4), pages 1173-1209, November.
  29. 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.
  30. Nemet, Gregory F. & Bailey, Adrian J., 2000. "Distance and health care utilization among the rural elderly," Social Science & Medicine, Elsevier, vol. 50(9), pages 1197-1208, May.
  31. Neidell, Matthew & Waldfogel, Jane, 2009. "Program participation of immigrant children: Evidence from the local availability of Head Start," Economics of Education Review, Elsevier, vol. 28(6), pages 704-715, December.
  32. Liu, Haiyong & Mroz, Thomas A. & van der Klaauw, Wilbert, 2010. "Maternal employment, migration, and child development," Journal of Econometrics, Elsevier, vol. 156(1), pages 212-228, May.
  33. Susanna Loeb & Bruce Fuller & Sharon Lynn Kagan & Bidemi Carrol & Judith Carroll, 2003. "Child Care in Poor Communities: Early Learning Effects of Type, Quality, and Stability," NBER Working Papers 9954, National Bureau of Economic Research, Inc.
  34. Jennifer Hill & Jane Waldfogel & Jeanne Brooks-Gunn, 2002. "Differential effects of high-quality child care," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 21(4), pages 601-627.
  35. Korenman, Sanders & Miller, Jane E. & Sjaastad, John E., 1995. "Long-term poverty and child development in the United States: Results from the NLSY," Children and Youth Services Review, Elsevier, vol. 17(1-2), pages 127-155.
  36. David M. Blau, 1999. "The Effect Of Income On Child Development," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 261-276, May.
  37. 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.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:16250. 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: ()

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.