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The federal child care subsidy program reduces child care costs for eligible low-income families to facilitate parental employment and educational attainment. Using national data from the Early Childhood Longitudinal Study-Birth Cohort (ECLS-B), this study is the first to ask whether subsidies induce an increase in maternal education level over time, and if so, whether this increase is steeper for mothers who use subsidies to increase their education when their children are younger. After matching subsidy recipients with subsidy-eligible non-recipients on a range of background variables, we assess whether mothers increase their education levels in response to entry into the subsidy program at two different points in a child's early years: first when children are 2 years old and then when children are in preschool. Results suggest that subsidy receipt promotes mothers' educational attainment, with the largest impacts for mothers who receive subsidies when their children are younger (2 years old vs preschool-age) and for subgroups of mothers who have low baseline levels of education (high school or below) and who are not initially enrolled in school. [ABSTRACT FROM AUTHOR]

State child care subsidy programs are intended to support the employment of low-income parents, particularly for families receiving or likely to receive Temporary Assistance for Needy Families. To study the impact of child care subsidies on employment, this study used detailed data from a survey of low-income parents in Minnesota, linked with administrative data on subsidy receipt, to estimate endogenous switching models of subsidy receipt and parent work status. Parental preferences about the child development-related characteristics of child care settings were the basis for an instrumental variable used to predict subsidy receipt. Receiving a subsidy significantly increased the probability of employment and especially of full-time employment. The findings suggest that expansion of the child care subsidy program could lead to increased employment among low-income parents with young children. [ABSTRACT FROM AUTHOR]

Abstract: In 2008, the federal government allotted $7 billion in child care subsidies to low-income families through the state-administered Child Care and Development Fund (CCDF), now the government''s largest child care program (). Although subsidies reduce costs for families and facilitate parental employment, it is unclear how they impact the quality of care families purchase. This study investigates the impact of government subsidization on parents’ selection of child care quality using multivariate regression and propensity score matching approaches to account for differential selection into subsidy receipt and care arrangements. Data were drawn from the Child Care Supplement to the Fragile Families and Child Wellbeing Study (CCS-FFCWS), conducted in 2002 and 2003 in 14 of the 20 FFCWS cities when focal children were 3 years old (N =456). Our results indicate that families who used subsidies chose higher quality care than comparable mothers who did not use subsidies, but only because subsidy recipients were more likely to use center-based care. Subgroup analyses revealed that families using subsidies purchased higher-quality home-based care but lower-quality center-based care than comparable non-recipients. Findings suggest that child care subsidies may serve as more than a work support for low-income families by enhancing the quality of nonmaternal care children experience but that this effect is largely attributable to recipients’ using formal child care arrangements (versus kith and kin care) more often than non-recipients. [Copyright &y& Elsevier]

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. [ABSTRACT FROM AUTHOR]

This article explores the duration and effect of child-care subsidy use among low-income working mothers in Wisconsin. Using an event-history model, the study finds that mothers are likely to cycle on and off subsidy systems and that their subsidy spells tend to end relatively quickly. Results from a Tobit model with a lagged dependent variable suggest that long-term use of child-care subsidies is associated with increases in mothers' earnings. [ABSTRACT FROM AUTHOR]

We use qualitative and quantitative data from a multi-year study of low-income families included in New Hope, an experimental anti-poverty intervention in Milwaukee, Wisconsin to understand why low-income families’ use of program-based child care as well as subsidies offered to pay for such care is often low and/or episodic. Ethnographic analyses from 38 families in experimental and control groups suggest that child care choices and subsidy use must fit into the family daily routines and with the beliefs people have about child care. Both ecocultural theory and parents’ own reports of child care decisions suggest four themes accounting for child care choice: material and social resources; conflicts in the family; values and beliefs about parenting and child development; and predictability and stability of child care. Child care subsidy programs can be more effective if they offer greater flexibility and a range of options that better fit into the varied daily routines of the low-income families they are intended to serve. [Copyright &y& Elsevier]

Abstract--We examine the effects of child care subsidies on the labor supply decisions of low-income mothers and on the quality of care their children receive using newly gathered data on two programs that subsidize the child care expenditures of families in Kentucky. We find that single mothers who receive child care subsidies are more likely to be employed and are generally more satisfied with the care their children receive, but subsidies have little effect on hours worked. [ABSTRACT FROM AUTHOR]