Citation
Zhu, Yi. (2009.) Essays on welfare, children, and families. (Unpublished dissertation, Michigan State University.)
Highlights
- The study’s objective was to examine the effect of child care subsidies through the Child Care and Development Fund (CCDF) program on the employment of low-income single mothers.
- The author used data from the 2001–2007 Current Population Survey (CPS). The treatment condition was defined as the amount of the state child care subsidy for single mothers with children younger than 13.
- The study found a statistically significant relationship between the amount of child care subsidies and single mothers’ full-time employment. The study did not find relationships between child care subsidies and other employment outcomes examined.
- The quality of causal evidence presented in this report is low because the author did not account for existing differences between the mothers who did and did not receive the child care assistance. This means we are not confident that the estimated effects are attributable to the child care subsidies; other factors are likely to have contributed.
Intervention Examined
Child Care Subsidies
Features of the Intervention
The child care subsidies examined in this study were for single mothers with children younger than 13 receiving child care assistance through the CCDF. The amount of the child care subsidies varied based on the age of the child, the parent’s level of employment, family income, and the state or county welfare agency providing the subsidies. The subsidies also varied by year within a state because of changes in state policies. The subsidies were given in the form of vouchers to be used toward child care at a licensed facility or provider. Of the mothers who received a child care subsidy from the welfare agency, the average amount of the subsidy was $479.80.
Features of the Study
The study included a sample of 30,300 single mothers with children younger than 13 identified through the Current Population Survey (CPS) from 2001 to 2007. The author developed a state-level child care subsidy measure using 2001–2006 biennial child care reimbursement rate data from the CCDF and 2001–2007 annual family copayment data from policy surveys conducted by the Children’s Defense Fund and the National Women’s Law Center. The author defined the child care subsidy as the difference between the child care reimbursement rate and the family copayment rate. The author used the Urban Institute’s Welfare Rules Database to capture state-level measures of work-related requirements and the welfare environment.
The author used a statistical model to estimate the effect of the child care subsidies on employment outcomes. The model accounted for individual- and state-level characteristics as well as year and state effects.
Findings
- The study found a statistically significant, positive relationship between higher amounts of child care subsidies and low-income single mothers’ full-time employment.
- There were no statistically significant relationships between child care subsidies and low-income single mothers’ overall employment.
Considerations for Interpreting the Findings
The author did not account for previous employment history in the models. Thus, the analysis cannot receive a moderate evidence rating. In addition, it was unclear how the author selected the sample from the CPS and whether the treatment condition as defined by the author varied at the state or individual levels. Furthermore, information presented in the report suggested that members of the comparison group received child care subsidies of similar amounts to those received by the treatment group. Attempts to reach the author to clarify these issues were unsuccessful.
Causal Evidence Rating
The quality of causal evidence presented in this report is low because the author did not account for existing differences between the mothers who did and did not receive the child care assistance. This means we are not confident that the estimated effects are attributable to the child care subsidies; other factors are likely to have contributed.