Does Child Care Assistance Matter? The Effects of Welfare and Employment Programs on Child Care for Preschool- and Young School-Aged Children

Abstract

Child care plays a unique dual role in welfare and employment programs, providing both a critical support for parents seeking and sustaining employment, as well as a context for the cognitive, behavioral, and social development of their children. We examine the effects of 13 experimental welfare and employment programs on single parents’ use of child care for their preschool and young school-age children. Parents of preand young school-aged children still have important child care needs. In fact, policies designed to encourage employment (e.g., earnings supplements and mandated participation) increase the likelihood of employment and the likelihood that parents will use any child care for these children. Furthermore, policies designed to support paid or regulated care embedded in welfare and employment programs affect the types of care used, encouraging the use of formal rather than home-based care. These findings suggest that even for children who are in school for part of the day, parental preferences for care and market supply conditions, child care assistance can expand low-income parents’ options for combining work and family responsibilities.

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