Working Paper: NBER ID: w7583
Authors: Robert J. Lemke; Ann Dryden Witte; Magaly Queralt; Robert Witt
Abstract: We assess the role of child care in the welfare to work transition using an unusually large and comprehensive data base. Our data are for Massachusetts, a state that began welfare reform in 1995 under a federal waiver, for the period July 1996 through August 1997. We find that both the nature of the child care market and the availability of subsidized care and early education affect the probability that current and former welfare recipients will work. Regarding the child care market, we find that the cost, stability and quality of care matter. We also find that child care subsidies and some types of early education serve to increase employment. To be more specific, we find that increased funding for child care subsidies and the availability of full day kindergarten significantly increase the probability the current and former welfare recipients work.
Keywords: child care; welfare; employment; subsidies; early education
JEL Codes: H24; I38; J22
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| child care subsidies (J13) | employment probability (J68) |
| availability of full-day kindergarten (I21) | employment probability (J68) |
| availability of part-day, part-year Head Start and pre-kindergarten programs (I21) | employment probability (J68) |
| availability of part-day, part-year Head Start and pre-kindergarten programs (I21) | participation in training and education programs (J24) |
| child care quality and stability (I24) | employment probability (J68) |