The Determinants and Consequences of Child Care Subsidies for Single Mothers

43 Pages Posted: 28 Oct 2001

See all articles by David M. Blau

David M. Blau

University of North Carolina (UNC) at Chapel Hill - Department of Economics; IZA Institute of Labor Economics

Erdal Tekin

Georgia State University - Department of Economics; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Date Written: November 2001

Abstract

This paper provides an early analysis of child care subsidies under welfare reform. Previous studies of child care subsidies use data from the pre-welfare-reform period, and their results may not apply to the very different post-reform environment. We use data from the 1997 National Survey of America's Families to analyze the determinants of receipt of a child care subsidy and the effects of subsidy receipt on employment, school attendance, job search, and welfare participation. We analyze the impact on subsidy receipt of household characteristics such as family size and structure, and past participation in welfare. Ordinary least squares estimates show positive and significant effects of subsidy receipt on employment, school enrollment, and welfare participation. Two stage least squares estimates that treat subsidy receipt as endogenous and use county dummies as identifying instruments show much less evidence that subsidy receipt affects these outcomes.

Keywords: Welfare Reform, Child Care Subsidy, Employment

JEL Classification: J13, I38

Suggested Citation

Blau, David M. and Tekin, Erdal, The Determinants and Consequences of Child Care Subsidies for Single Mothers (November 2001). Available at SSRN: https://ssrn.com/abstract=288291

David M. Blau

University of North Carolina (UNC) at Chapel Hill - Department of Economics ( email )

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Erdal Tekin (Contact Author)

Georgia State University - Department of Economics ( email )

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