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The Impact of Child Care Subsidies on Mothers’ Education Outcomes

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Abstract

The federal child care subsidy program reduces child care costs for eligible low-income families to facilitate parental employment and educational attainment. Using national data from the Early Childhood Longitudinal Study-Birth Cohort (ECLS-B), this study is the first to ask whether subsidies induce an increase in maternal education level over time, and if so, whether this increase is steeper for mothers who use subsidies to increase their education when their children are younger. After matching subsidy recipients with subsidy-eligible non-recipients on a range of background variables, we assess whether mothers increase their education levels in response to entry into the subsidy program at two different points in a child’s early years: first when children are 2 years old and then when children are in preschool. Results suggest that subsidy receipt promotes mothers’ educational attainment, with the largest impacts for mothers who receive subsidies when their children are younger (2 years old vs preschool-age) and for subgroups of mothers who have low baseline levels of education (high school or below) and who are not initially enrolled in school.

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Notes

  1. All sample sizes rounded to nearest 50 per National Center for Education Statistics (NCES) requirements.

  2. In the CDP2 sample, we also exclude all mothers who utilize either state-funded public preschool or Head Start arrangements (n ≈ 1,000) in the preschool year to exclude subsidy non-recipients exposed to other types of no- or low-cost public ECE.

  3. We also compute inverse probability weighted (IPW) (see Hirano et al. 2003), and ordinary least squares (OLS) estimates of the impacts of subsidy receipt on mothers’ education outcomes to compare the sensitivity of results to alternate estimation approaches (see Table 8 for IPW estimates). Because both propensity score estimators compute over areas of common support, use the logistic distribution, and control for the same vector of covariates, differences in impact estimates are due only to differences in the way each approach models nonlinearities in the relationship between subsidy status and indicators of educational attainment.

  4. The results of covariate balance after implementing IPW are presented in Table 7.

  5. Indeed, sensitivity tests including Head Start and public pre-k participants in the CDP2 comparison group weaken impacts on primary outcomes. Additional research is needed to more sensitively compare the differential impacts of ECE participation on mothers’ human capital outcomes by publicly-funded program type.

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Acknowledgements

We are grateful for feedback received on earlier versions of this manuscript from Drs. Christ Herbst, Rebecca Ryan, and William Gormley, and conference participants at the Association for Public Policy and Management (APPAM) 2017 Fall Research Conference the Society for Research in Educational Effectiveness (SREE) Spring 2018 Conference, and the 2018 National Research Conference on Early Childhood (NRCEC). None of the above bear any responsibility for the contents.

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  1. Department of Psychology, Georgetown University, 303 White-Gravenor Hall, 3700 O Street NW, Washington, DC, 20057, USA

    Owen N. Schochet & Anna D. Johnson

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Appendix: Additional Propensity Score Diagnostics and IPW Estimates

Appendix: Additional Propensity Score Diagnostics and IPW Estimates

See Tables 6, 7, 8 and Fig. 3.

Table 6 Descriptive statistics for mothers after propensity score matching by child development period
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Table 7 Absolute standardized differences (ASDs) by subsidy receipt, IPW
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Table 8 IPW impacts of CCDF subsidy receipt on mothers’ educational attainment by child development period
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Fig. 3
figure 3

Weighted distribution of propensity scores in matched sample, by Child Development Period

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Schochet, O.N., Johnson, A.D. The Impact of Child Care Subsidies on Mothers’ Education Outcomes. J Fam Econ Iss 40, 367–389 (2019). https://doi.org/10.1007/s10834-019-09628-0

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