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Child care subsidies and employment outcomes of low-income families

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  • Ha, Yoonsook
  • Miller, Daniel P.

Abstract

This study examined the relationship between mothers' child care subsidy use and their earnings and labor force attachment. Using Wisconsin administrative data, this study examined 48months of subsidy use for mothers who became eligible for child care subsidies between March 2000 and February 2001 (n=8984). Comparing subsidy-eligible mothers who received subsidies and those who were eligible but did not, we estimated the likelihood of experiencing an increase (or decrease) in earnings and the likelihood of experiencing an increase (or decrease) in the number of quarters employed. We used multinomial regression models to estimate each economic outcome separately and used logistic regression models to estimate both of the outcomes together. In both separate and joint analyses of earnings and quarters employed, we found that subsidy receipt was associated with an increase in the probability of an increase in earnings and/or number of quarters employed and a decrease in the probability of a decrease in quarters employed. However, in general, these associations were only significant when mothers received a subsidy for 12months or more. These findings suggest the importance of identifying potential barriers to subsidy use, as stable receipt of subsidies may contribute to parents' economic well-being.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:cysrev:v:59:y:2015:i:c:p:139-148
    DOI: 10.1016/j.childyouth.2015.11.003
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    References listed on IDEAS

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    Cited by:

    1. Deana Grobe & Elizabeth E. Davis & Ellen K. Scott & Roberta B. Weber, 2017. "Using Policy-Relevant Administrative Data in Mixed Methods: A Study of Employment Instability and Parents’ Use of Child Care Subsidies," Journal of Family and Economic Issues, Springer, vol. 38(1), pages 146-162, March.
    2. Polavarapu, Mounika & Williamson, Alexandria A & Krause, Donnamarie & Jordan, Timothy R., 2023. "Vocational success among at-risk, low-income young adults: Are there contributing factors?," Children and Youth Services Review, Elsevier, vol. 146(C).
    3. Slicker, Gerilyn & Hustedt, Jason T., 2022. "Predicting participation in the child care subsidy system from provider features, community characteristics, and use of funding streams," Children and Youth Services Review, Elsevier, vol. 136(C).
    4. Kim, Jaeseung & Henly, Julia R., 2021. "Dynamics of child care subsidy use and material hardship," Children and Youth Services Review, Elsevier, vol. 124(C).
    5. Sullivan, Amanda L. & Farnsworth, Elyse M. & Susman-Stillman, Amy, 2018. "Patterns and predictors of childcare subsidies for children with and without special needs," Children and Youth Services Review, Elsevier, vol. 88(C), pages 218-228.
    6. Maguire-Jack, Kathryn & Hardi, Felicia & Stormer, Bri & Lee, Joyce Y. & Feely, Megan & Rostad, Whitney & Ford, Derek C. & Merrick, Melissa T. & Murphy, Catherine A. & Bart. Klika, J., 2022. "Early childhood education and care policies in the U.S. And their impact on family violence," Children and Youth Services Review, Elsevier, vol. 142(C).
    7. Slicker, Gerilyn & Tang, Jing & Kelly, Cara L., 2020. "Workforce-, classroom- and program- level predictors of quality in infant and toddler programs: How subsidized programs compare with other center-based programs," Children and Youth Services Review, Elsevier, vol. 119(C).
    8. Elizabeth L. Doran & Ann P. Bartel & Jane Waldfogel, 2018. "Gender in the Labor Market: The Role of Equal Opportunity and Family-Friendly Policies," NBER Working Papers 25378, National Bureau of Economic Research, Inc.

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