Child Care Subsidy Receipt Research Articles

Earnings and Employment Patterns Following Child-Care Subsidy Receipt

Earnings and Employment Patterns Following Child-Care Subsidy Receipt

Associations Between Parent–Teacher Cocaring Relationships, Parent–Child Relationships, and Young Children’s Social Emotional Development

Understanding the correlates of young children’s social emotional development is important to optimally support children’s long-term success. This study examined the associations among dimensions of parent–teacher cocaring relationships, infants’ and toddlers’ social emotional adjustment, and parent–child closeness and conflict. Our sample consisted of 90 families utilizing full-time, center-based childcare for their 12–36 month old child, about a fourth of whom received subsidized childcare. Parents completed a set of questionnaires about themselves, their cocaring relationship with a particular classroom teacher, their relationship with their child, and the child’s social emotional functioning. After controlling for children’s age, parents’ race and education, and childcare subsidy receipt, HLM analyses revealed significant associations. After accounting for parent–child relationship quality, parents’ perceptions of cocaring endorsement were positively associated with child competence, and perceptions of cocaring undermining were positively associated with children’s dysregulation. In addition, reported cocaring endorsement demonstrated a marginal negative association with parent–child conflict. Parent–child conflict was significantly associated with all forms of children’s social emotional functioning, while parent–child closeness was only associated with child competence. Findings highlight the importance of adult-relationships in children’s early social emotional development, with an emphasis on the cocaring relationship as a bridge between home and child care contexts, and the utility of the cocaring framework as a guide for examination of and reflection on the processes underlying parent–teacher relationships.

Child Care Subsidy Use and Children’s Outcomes in Middle School

This article examines associations between child care subsidy use in early childhood and children’s middle school outcomes. Using a unique database linking administrative records of child care subsidy receipt with parental earnings, social assistance data, and students’ public school outcomes, we generate quasi-experimental estimates of subsidy effects on children’s reading and math test scores and school absences in third through eighth grades. Findings suggest that subsidies are associated with reduced absenteeism in seventh and eighth grades and with increased reading and math scores in third grade, but only for the subset of children whose subsidies were used to attend licensed center- or home-based care. Results provide initial evidence for longer term impacts of the child care subsidy program on children’s school performance.

Child care subsidies and the stability and quality of child care arrangements

Each month, the child care subsidy program helps nearly a million low-income families pay for child care. The financial support of a child care subsidy might be expected to increase stability and quality of care, which are characteristics of care that support child development. However, there are concerns that short durations of subsidy receipt may increase child care instability. Further, there is debate about whether subsidy receipt leads to the use of higher or lower quality care. In this study we use longitudinal survey data on low-income families and linked administrative data on subsidy receipt to investigate the stability and reported quality of child care arrangements. Because we observe the same children repeatedly over time, both when they are and are not receiving child care subsidies, we use child fixed-effects models to address the selection problems that otherwise would bias the relationships among subsidy, stability, and quality. We find that when children received child care subsidies they experienced higher quality care as reported by parents. Yet there was no difference in the stability of care arrangements while receiving subsidy compared to when not receiving subsidy. Additionally, children often had multiple providers concurrently, regardless of subsidy receipt. These results suggest that child care subsidy receipt may promote positive child outcomes due to increased access to higher quality care without worsening the stability of care.

The Problem of Measurement Error in Self-Reported Receipt of Child-Care Subsidies: Evidence from Two States

AbstractResearchers frequently rely on survey responses to determine whether families receive government assistance and to study the effects of government programs, but these responses are often inaccurate. This study investigates misreporting in the child-care subsidy program by comparing survey responses on child-care subsidy receipt with program administrative data in two states. While we find a lower rate of misreporting than is typical for other government assistance programs, overreporting of benefit receipt is surprisingly common and generates overestimates of program participation. Analyses further suggest that the frequency and systematic nature of misreporting bias estimates of the predictors of program receipt and the effects of the program. These findings illustrate the necessity of assessing the frequency of response errors and understanding their implications in generating valid research results on the effects of government programs.

Time for a change? Predictors of child care changes by low-income families

Instability in child care arrangements can negatively affect children's development, especially in low-income families. However, few studies have examined what predicts changes over time in child care arrangements. This paper presents findings from a unique multiyear study tracking child care use in low-income families. We estimate rich quantitative models to analyze the relationships among child, household, and care provider characteristics and four different types of changes. We find turnover in child care arrangements to be common in this low-income population. Over a period of six months, half of the children changed primary provider. Child care changes were frequently related to job loss, changes in family composition, or the changing availability of caregivers. While concerns have been raised that short spells of child care subsidy receipt cause child care instability, we found that subsidy use was not associated with higher rates of change. In addition, we found that the lower a parent's assessment...

CHILD CARE SUBSIDIES, MATERNAL HEALTH, AND CHILD-PARENT INTERACTIONS: EVIDENCE FROM THREE NATIONALLY REPRESENTATIVE DATASETS

A complete account of the US child care subsidy system requires an understanding of its implications for both parental and child well-being. Although the effects of child care subsidies on maternal employment and child development have been recently studied, many other dimensions of family well-being have received little attention. This paper attempts to fill this gap by examining the impact of child care subsidy receipt on maternal health and the quality of child-parent interactions. The empirical analyses use data from three nationally representative surveys, providing access to numerous measures of family well-being. In addition, we attempt to handle the possibility of non-random selection into subsidy receipt by using several identification strategies both within and across the surveys. Our results consistently indicate that child care subsidies are associated with worse maternal health and poorer interactions between parents and their children. In particular, subsidized mothers report lower levels of overall health and are more likely to show symptoms consistent with anxiety, depression, and parenting stress. Such mothers also reveal more psychological and physical aggression toward their children and are more likely to utilize spanking as a disciplinary tool. Together, these findings suggest that work-based public policies aimed at economically disadvantaged mothers may ultimately undermine family well-being.

Can we trust parental reports of child care subsidy receipt?

In recent years, research examining determinants and consequences of the means-tested child care subsidy program (the Child Care and Development Fund [CCDF]) has grown dramatically. To measure subsidy utilization, existing studies typically rely on parent-reported measures of subsidy receipt drawn from large surveys. As the research literature on child care subsidies has grown, however, so have concerns about the trustworthiness of parent-reported subsidy use. One way to assess the quality of parent-reported subsidy use is to examine its overlap with another subsidy receipt measure, drawn from a different source. The current paper uses the Fragile Families and Child Well-Being Study (FFCWS), the only existing survey data source that contains an alternate measure of subsidy receipt - based on child care provider report - which permits a comparison to parent-reported measures. We find evidence that increases our confidence in the trustworthiness of parents as accurate reporters of subsidy receipt. In recognition that neither data source reflects "true" subsidy receipt, however, we conclude with a discussion of limitations and steps for future research.

Child‐Care Subsidies and School Readiness in Kindergarten

The federal child-care subsidy program represents one of the government's largest investments in early care and education. Using data from the nationally representative Early Childhood Longitudinal Study-Birth Cohort, this study examines associations, among subsidy-eligible families, between child-care subsidy receipt when children are 4 years old and a range of school readiness outcomes in kindergarten (sample n≈1,400). Findings suggest that subsidy receipt in preschool is not directly linked to subsequent reading or social-emotional skills. However, subsidy receipt predicted lower math scores among children attending community-based centers. Supplementary analyses revealed that subsidies predicted greater use of center care, but this association did not appear to affect school readiness.

Patterns of child care subsidy receipt and the stability of child care

Abstract Previous studies have found that child care subsidy spells are often short and that multiple spells are common. Such instability in subsidy use may lead to instability in child care arrangements, yet we have little evidence of the relationship between them. This article focuses on a cohort of young children in Wisconsin and follows their patterns of the receipt of child care subsidies and subsidized care arrangements up until the age of 5. The study estimates the extent to which the patterns of subsidy use is associated with the stability of subsidized child care arrangements. It also examines variation in the degree of instability in the receipt of child care subsidies and subsidized care arrangements and factors related to such variation. The study finds a positive association between the number of subsidy-receipt spells and the number of subsidized child care providers that children experience. The study also finds that children from the most disadvantaged families are the ones who experience the highest degree of instability of care and subsidy receipt.

Child Care Subsidies, Maternal Well-Being, and Child-Parent Interactions: Evidence from Three Nationally Represented Datasets

A complete account of the U.S. child care subsidy system requires an understanding of its implications for both parental and child well-being. Although the effects of child care subsidies on maternal employment and child development have been recently studied, many other dimensions of family well-being have received little attention. This paper attempts to fill this gap by examining the impact of child care subsidy receipt on maternal health and the quality of child-parent interactions. The empirical analyses use data from three nationally representative surveys, providing access to numerous measures of family well-being. In addition, we attempt to handle the possibility of non-random selection into subsidy receipt by using several identification strategies both within and across the surveys. Our results consistently indicate that child care subsidies are associated with worse maternal health and poorer interactions between parents and their children. In particular, subsidized mothers report lower levels of overall health and are more likely to show symptoms consistent with anxiety, depression, and parenting stress. Such mothers also reveal more psychological and physical aggression toward their children and are more likely to utilize spanking as a disciplinary tool. Together, these findings suggest that work-based public policies aimed at economically disadvantaged mothers may ultimately undermine family well-being.

A method for estimating child poverty rates, projections for the short-term and the relationship between child poverty and child care subsidy receipt at the county level

At present, county level annual poverty rates for broad age groups at different poverty thresholds are not readily available. Unlike the 2000 census, the 2010 census did not collect income data to allow calculation of poverty rates, and future decennial censuses will not. Thus, there is a need for a method to estimate annual poverty rates at the county level. To fill in the existing gap, this paper develops a method conceptually similar to the regression-based modeling approach utilized for Census Bureau Small Area Estimates (SAIPE). This is applied to estimate and project the proportion of children less than 12 years of age whose income is below the 200% poverty threshold, by county in New York State from 2008 to 2010. Multiple regression techniques including random effects and Auto Regressive Integrated Moving Average (ARIMA) models are applied. Data obtained from the U.S. Census Bureau, the American Community Survey and administrative sources are utilized. Administrative data sources adjust for, incorporate and model recent changes in the county economic situation. Finally, this paper contributes to the literature on county level relationships between poverty rates and income-based benefits, particularly on child care subsidies. Specifically, the association between the proportion of children receiving child care subsidies and child poverty rates vary by metropolitan, micropolitan and non-core-based designation of counties.

Child care subsidy, child care costs, and employment of low-income single mothers

Abstract This paper examines the relationship between welfare reform and child care costs among low-income single mothers and the effects of post reform child care subsidy receipt on the status and duration of these mothers' employment. A two-step model analysis of data from the Survey of Income and Program Participation (1993, 1996, and 2001 panels) revealed marginal effects of welfare reform on child care costs, indicating that child care costs increased significantly among low-income single mothers after welfare reform. Results from a Tobit model revealed that child care subsidy receipt also had significant effects on employment status. Finally, families with only a mother and children in the household had a higher probability of using paid child care and spent more on care than mothers with other adults in the household.

Do child care subsidies influence single mothers’ decision to invest in human capital?

A child care subsidy is one of the most effective policy instruments to facilitate low-income individuals’ transition from welfare to work. Although previous studies consistently find that subsidy receipt is associated with increased employment among single mothers, there is currently no evidence on the influence of these benefits on the decision to invest in human capital. Using data from the Kindergarten cohort of the Early Childhood Longitudinal Study, this paper examines the impact of child care subsidy receipt on the likelihood of engaging in education and job training activities. We identify the impact of subsidy receipt by exploiting plausibly exogenous geographic variation in the distance that parents must travel from home in order to reach the nearest social service agency that administers the subsidy application process. Results suggest that child care subsidies encourage single mothers to engage in human capital investment. In particular, our instrumental variables estimates imply that subsidy receipt increases the likelihood that a single mother enrolls in courses at a school or university by 13 percentage points and participates in a job training program by 8 percentage points.

Child care subsidies and childhood obesity

In this paper, we study the impact of child care subsidy receipt on low-income children’s weight outcomes in the fall and spring of kindergarten using data from the Early Childhood Longitudinal Study, Kindergarten Cohort. Our results suggest that subsidy receipt is associated with increases in BMI and a greater likelihood of being overweight and obese. Using quantile regression methods, we find substantial variation in subsidy effects across the BMI distribution. Specifically, child care subsidies have no effect on BMI at the lower end of the distribution, inconsistent effects in the middle of the distribution, and large effects at the top of the distribution. Our results point to the use of non-parental child care, particularly center-based services, as the key mechanism through which subsidies influence children’s weight outcomes.

SINGLE MOTHERS WORKING AT NIGHT: STANDARD WORK AND CHILD CARE SUBSIDIES

This article examines the effect of child care subsidies on the standard work decision of single mothers. Results suggest that child care subsidy receipt is associated with about a 7 percentage point increase in the probability of working at a standard job. When the effect of subsidy receipt is allowed to differ between welfare recipients and nonrecipients, results indicate that subsidy receipt has a large and positive effect among welfare recipients, whereas the effect on nonrecipients is much smaller. These findings underscore the importance of child care subsidies in helping low‐income parents, especially welfare recipients, gain standard employment. (JEL J13, I38)

Child care subsidy receipt, employment, and child care choices of single mothers

This paper examines the impact of actual subsidy receipt of single mothers on their joint employment and child care mode decisions in the post-welfare reform environment. Results indicate that single mothers are highly responsive to child care subsidies by increasing their employment while moving away from parental and relative care toward center care in the process.

Single Mothers Working at Night: Standard Work, Child Care Subsidies, and Implications for Welfare Reform

Using a data set from the post welfare reform environment (the 1999 National Survey of America's Families), this paper investigates the impact of child care subsidies on the standard work (i.e., work performed during the traditional work hours of 8 a.m. and 6 p.m. through Monday and Friday) decision of single mothers and tests whether this impact differs between welfare recipients and nonrecipients. The econometric strategy accounts for sample selection into the labor force and the potential endogeneity of child care subsidy receipt and welfare participation. Results suggest that child care subsidies are associated with a 6 percentage point increase in the probability of single mothers working at standard jobs. When the impact of subsidies is allowed to differ between welfare recipients and non-recipients, results indicate that welfare recipients are 14 percentage points more likely to work at standard jobs than others when they are offered a child care subsidy. Among non-recipients, child care subsidies increase standard work probability by only 1 percentage point. These results underscore the importance of child care subsidies helping low-income parents, especially welfare recipients, find jobs with conventional or standard schedules and lend support to the current practice of states' giving priority to welfare recipients for child care subsidies. Results are found to be robust to numerous specification checks.

Child Care Subsidy Receipt, Employment, and Child Care Choices of Single Mothers

This paper examines the impact of actual subsidy receipt of single mothers on their joint employment and child care mode decisions in the post-welfare reform environment, which places a high priority on parental choice with the quality and type of care chosen. Results indicate that single mothers are highly responsive to child care subsidies by increasing their employment while moving from parental and relative care to center care in the process.

Single Mothers Working at Night: Standard Work, Child Care Subsidies, and Implications for Welfare Reform

Using a data set from the post welfare reform environment (the 1999 National Survey of America's Families), this paper investigates the impact of child care subsidies on the standard work (i.e., work performed during the traditional work hours of 8 a.m. and 6 p.m. through Monday and Friday) decision of single mothers and tests whether this impact differs between welfare recipients and nonrecipients. The econometric strategy accounts for sample selection into the labor force and the potential endogeneity of child care subsidy receipt and welfare participation. Results suggest that child care subsidies are associated with a 6 percentage point increase in the probability of single mothers working at standard jobs. When the impact of subsidies is allowed to differ between welfare recipients and non-recipients, results indicate that welfare recipients are 14 percentage points more likely to work at standard jobs than others when they are offered a child care subsidy. Among non-recipients, child care subsidies increase standard work probability by only 1 percentage point. These results underscore the importance of child care subsidies helping low-income parents, especially welfare recipients, find jobs with conventional or standard schedules and lend support to the current practice of states' giving priority to welfare recipients for child care subsidies. Results are found to be robust to numerous specification checks.