Child Care Subsidies and the Employment of Welfare Recipients

Changing patterns of maternal employment, coupled with stronger work requirements for welfare recipients, are increasing the demand for child care. For many families, the cost of child care creates a financial burden; for mothers with low incomes and those who are former welfare recipients, these costs may be an insurmountable barrier to employment or economic self-sufficiency. Despite increased public spending in this area, the receipt of any child care subsidy appears to be a relatively rare and uncertain event. In this study, we use data from a sample of low-income single mothers (current and recent welfare recipients in California) to estimate the probability of their receiving child care subsidies and the effect of this probability on labor market activity.