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Childcare subsidy policy: What it can and cannot accomplish

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  • Erdal Tekin

    (American University and NBER, USA, and IZA, Germany)

Abstract

Most public expenditure on childcare in the US is made through a federal program, the Child Care and Development Fund (CCDF), established as part of landmark welfare reform legislation in 1996. The main goal of the reform was to increase employment and reduce welfare dependence among low-income families. Childcare subsidies have been effective in enabling parents to work, but apparently at some cost to the well-being of parents and children.

Suggested Citation

  • 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.
    • Handle: RePEc:iza:izawol:journl:y:2014:n:43
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    References listed on IDEAS

    as
    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. 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.
    3. Herbst, Chris M. & Tekin, Erdal, 2010. "Child care subsidies and child development," Economics of Education Review, Elsevier, vol. 29(4), pages 618-638, August.
    4. Almond, Douglas & Currie, Janet, 2011. "Human Capital Development before Age Five," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 15, pages 1315-1486, Elsevier.
    5. O. Ashenfelter & D. Card (ed.), 2011. "Handbook of Labor Economics," Handbook of Labor Economics, Elsevier, edition 1, volume 4, number 4.
    6. O. Ashenfelter & D. Card (ed.), 2011. "Handbook of Labor Economics," Handbook of Labor Economics, Elsevier, edition 1, volume 4, number 5.
    7. Heckman, James J. & Moon, Seong Hyeok & Pinto, Rodrigo & Savelyev, Peter A. & Yavitz, Adam, 2010. "The rate of return to the HighScope Perry Preschool Program," Journal of Public Economics, Elsevier, vol. 94(1-2), pages 114-128, February.
    8. 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.
    9. 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).
    10. 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.
    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.
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    Cited by:

    1. 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.
    2. Tang, Jing & Kelly, Cara L. & Pic, Annette, 2021. "Latent profile analysis of toddler parents’ perceptions of early care and education arrangements," Children and Youth Services Review, Elsevier, vol. 129(C).

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    More about this item

    Keywords

    childcare; subsidy; employment; CCDF; regulation; quality;
    All these keywords.

    JEL classification:

    • 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
    • I2 - Health, Education, and Welfare - - Education
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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