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Child Care and the Welfare to Work Transition

Author

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  • Robert J. Lemke
  • Ann Dryden Witte
  • Magaly Queralt
  • Robert Witt

Abstract

We assess the role of child care in the welfare to work transition using an unusually large and comprehensive data base. Our data are for Massachusetts, a state that began welfare reform in 1995 under a federal waiver, for the period July 1996 through August 1997. We find that both the nature of the child care market and the availability of subsidized care and early education affect the probability that current and former welfare recipients will work. Regarding the child care market, we find that the cost, stability and quality of care matter. We also find that child care subsidies and some types of early education serve to increase employment. To be more specific, we find that increased funding for child care subsidies and the availability of full day kindergarten significantly increase the probability the current and former welfare recipients work.

Suggested Citation

  • Robert J. Lemke & Ann Dryden Witte & Magaly Queralt & Robert Witt, 2000. "Child Care and the Welfare to Work Transition," NBER Working Papers 7583, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:7583
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    References listed on IDEAS

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    1. Susan L. Averett & H. Elizabeth Peters & Donald M. Waldman, 1997. "Tax Credits, Labor Supply, And Child Care," The Review of Economics and Statistics, MIT Press, vol. 79(1), pages 125-135, February.
    2. Ribar, David C, 1995. "A Structural Model of Child Care and the Labor Supply of Married Women," Journal of Labor Economics, University of Chicago Press, vol. 13(3), pages 558-597, July.
    3. David C. Ribar, 1992. "Child Care and the Labor Supply of Married Women: Reduced Form Evidence," Journal of Human Resources, University of Wisconsin Press, vol. 27(1), pages 134-165.
    4. Jean Kimmel, 1992. "Child Care and the Employment Behavior of Single and Married Mothers," Upjohn Working Papers 93-14, W.E. Upjohn Institute for Employment Research.
    5. Berger, Mark C & Black, Dan A, 1992. "Child Care Subsidies, Quality of Care, and the Labor Supply of Low-Income, Single Mothers," The Review of Economics and Statistics, MIT Press, vol. 74(4), pages 635-642, November.
    6. Jean Kimmel, 1998. "Child Care Costs As A Barrier To Employment For Single And Married Mothers," The Review of Economics and Statistics, MIT Press, vol. 80(2), pages 287-299, May.
    7. Johansen, A-S & Leibowitz, A & Waite, L-J, 1996. "The Importance of Child-Care Characteristics to Choice of Care," Papers 96-21, RAND - Reprint Series.
    8. Kimmel, Jean, 1995. "The Effectiveness of Child-Care Subsidies in Encouraging the Welfare-to-Work Transition of Low-Income Single Mothers," American Economic Review, American Economic Association, vol. 85(2), pages 271-275, May.
    9. Ann Dryden Witte & Magaly Queralt & Tasneem Chipty & Harriet Griesinger, 1998. "Unintended Consequences? Welfare Reform and the Working Poor," NBER Working Papers 6798, National Bureau of Economic Research, Inc.
    10. Connelly, Rachel, 1992. "The Effect of Child Care Costs on Married Women's Labor Force Participation," The Review of Economics and Statistics, MIT Press, vol. 74(1), pages 83-90, February.
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    Cited by:

    1. Rachel Connelly & Jean Kimmel, 2003. "The Effect of Child Care Costs on the Employment and Welfare Recipiency of Single Mothers," Southern Economic Journal, John Wiley & Sons, vol. 69(3), pages 498-519, January.
    2. Ann Dryden Witte & Magaly Queralt, 2003. "Impacts of Eligibility Expansions and Provider Reimbursement Rate Increases on Child Care Subsidy Take-Up Rates, Welfare Use and Work," NBER Working Papers 9693, National Bureau of Economic Research, Inc.
    3. Blau, David M. & Tekin, Erdal, 2001. "The Determinants and Consequences of Child Care Subsidies for Single Mothers," IZA Discussion Papers 383, Institute of Labor Economics (IZA).
    4. David C. Ribar, 2005. "Transitions from Welfare and the Employment Prospects of Low‐Skill Workers," Southern Economic Journal, John Wiley & Sons, vol. 71(3), pages 514-533, January.
    5. 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.
    6. Rebecca M. Blank, 2002. "Evaluating Welfare Reform in the United States," Journal of Economic Literature, American Economic Association, vol. 40(4), pages 1105-1166, December.
    7. Ann Witte & Magaly Queralt & Robert Witt & Harriet Griesinger, 2002. "The Policy Context and Infant and Toddler Care in the Welfare Reform Era," NBER Working Papers 8893, National Bureau of Economic Research, Inc.
    8. Jon D. Wisman & Aaron Pacitti, 2017. "Guaranteed Employment and Universal Child Care For a New Social Contract," Working Papers 2017-05, American University, Department of Economics.
    9. Liu, Meirong & Anderson, Steven G., 2012. "Neighborhood effects on working mothers' child care arrangements," Children and Youth Services Review, Elsevier, vol. 34(4), pages 740-747.
    10. Waldfogel, Jane, 2004. "Welfare reform and the child welfare system," Children and Youth Services Review, Elsevier, vol. 26(10), pages 919-939, October.

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    More about this item

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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