Abstract
ABSTRACT Under Temporary Assistance for Needy Families (TANF), states have considerable flexibility in setting child care subsidy program rules including eligibility requirements, subsidy payment methods, and co-payment rates. This paper analyzes the effects of variations in child care subsidy on low-income mothers' hours of work. It hypothesizes that variations in the availability (guaranteed transitional child care subsidy) and in the generosity (eligibility levels and co-payment requirement) of child care subsidy have significant impacts on low-income mothers' hours of work. Using the Current Population Survey (CPS) of 2005, it found that the eligibility levels of subsidy did have an impact on annual hours of work. When mothers who resided in stringent states were compared, those living in states with moderate and generous eligibility levels worked 186.2 hours and 174.31 hours more annually, respectively. The study also found that the odds of the mothers who lived in generous states working full-time a...
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