Abstract

This study fills an important gap about child care subsidy participation by exploring why parents leave the subsidy program in Oregon. Descriptive analyses using administrative data showed unexpectedly high levels of employment stability and low levels of family mobility. Many families appeared to remain eligible after exit based on earnings and participation in other means-tested assistance programs. Estimates from a Cox regression model showed that subsidy policies were associated with exits. Being in the last month of an eligibility period increased the likelihood of exiting the subsidy program by two to three times. This result suggests that lengthening eligibility period could increase the stability of subsidy usage and possibly subsidized child care arrangements.

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