Premium
Child Care Subsidies and Employment Behavior Among Very‐Low‐Income Populations in Three States
Author(s) -
Ficano Carlena K. Cochi,
Gennetian Lisa A.,
Morris Pamela A.
Publication year - 2006
Publication title -
review of policy research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.832
H-Index - 45
eISSN - 1541-1338
pISSN - 1541-132X
DOI - 10.1111/j.1541-1338.2006.00223.x
Subject(s) - receipt , subsidy , welfare , quarter (canadian coin) , earnings , welfare reform , demographic economics , labour economics , economics , work (physics) , spell , child care , income support , single mothers , psychology , finance , medicine , sociology , accounting , mechanical engineering , developmental psychology , archaeology , macroeconomics , pediatrics , anthropology , engineering , market economy , history
Using merged administrative data from welfare reform evaluations in three states, we estimate the effects of child care subsidy use on the length of time it takes for a welfare applicant to move into substantial employment. Findings show that the use of a child care subsidy during an unemployed or marginally employed spell of welfare receipt is associated with between a 0.6 and 1.7 quarter (or 11% to 34%) reduction in the time to substantial employment in two of the three state samples. The positive influence of subsidy use on transitions to substantial employment is strongest for those welfare applicants with the lowest earnings who are mixing welfare and work prior to subsidy receipt.