Childcare Subsidies and the Transition from Welfare to Work.

November 2003

Sandra K. Danziger, Elizabeth Oltmans Ananat, and Kimberly G. Browning, University of Michigan Program on Poverty and Social Welfare Policy.

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Abstract

We address how childcare subsidies help in the welfare-to-work transition relative to other factors. We examine how the policy operates, whether childcare problems differ by subsidy receipt and the effect of subsidy on work. Data are from a random sample panel study of welfare recipients post-1996. Findings show that subsidy receipt reduces costs but not parenting stress or problems with care. It predicts earnings and work duration net of other factors. Increased use of subsidies by eligible families and greater funding for childcare would help meet the demand for this important support for working poor families.
KEY WORDS: childcare, subsidy, welfare, mothers’ employment.



Keywords:
Child Well-being and Child Development, Employment, Unemployment, and the Labor Market, Social Welfare Programs and Policies