Childcare subsidy policy: What it can and cannot accomplish

Abstract

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The Impact of Child‐Care Subsidies on Child Development: Evidence from Geographic Variation in the Distance to Social Service Agencies

“…Despite these favorable results, parental employment is only one among many policy‐relevant outcomes that the CCDF might influence. To achieve a full understanding of the impact of child‐care subsidy policy, outcomes related to children's health and development must be examined, regardless of whether an explicit goal of the CCDF is to improve such outcomes (Tekin, ). Indeed, a large body of evidence indicates that developmental success fortified in early childhood—whether from parental inputs or environmental circumstances—may have lasting effects on schooling and labor market outcomes (Currie, ; Currie & Rossin‐Slater, ).…”

Parental Work Schedules and Child‐Care Arrangements in Low‐Income Families

“…Second, it would be worthwhile to investigate the role of the child‐care subsidy system in mediating the relationships described here. The Child Care Development Fund was established to promote both parental employment and high‐quality child care (Tekin, ). More work should be done to assess its effectiveness in light of changes in employment practices, especially for low‐skilled workers.…”