Benefit or Burden? State-Level Child Care Subsidy Policies, Subsidy Take-Up, and Maternal Employment from 2010-2022

• In Event: 50261 - Family Section Roundtables
  In Refereed Roundtable (60 minute): Table 7: Family Care Policy

Abstract

The challenges of work-family balance in the United States are a subject of perennial interest for both scholars and policymakers. While most U.S. mothers work outside the home, social policies—such as paid family leave, worker scheduling practices, and child care access—can facilitate or hinder parents’ ability to balance work and caregiving. Public investment in child care is particularly crucial given the high cost of care in the U.S., which can make it difficult for parents—especially mothers—to justify sustained employment. This paper examines the relationship between public child care investments and maternal employment through the case of the Child Care and Development Fund (CCDF). CCDF is the largest federal child care program in the U.S., providing funding for states to administer child care subsidies for low-income families with children under 13. While higher CCDF expenditures are associated with increased maternal employment, participation is low compared to other safety net programs, and the mechanisms driving subsidy take-up remain understudied. Using detailed state-level subsidy policy data linked to CCDF administrative records and individual-level employment and demographic data, we investigate whether administrative burden acts as a barrier to subsidy take-up and subsequent employment for low-income mothers. Our findings show that more generous state subsidy policies—especially longer redetermination periods, copayment exemptions, and online application access—are associated with higher rates of subsidy take-up and higher likelihood of employment among eligible mothers. Thus, expanding state CCDF policies that reduce administrative and financial barriers may increase subsidy participation and improve employment outcomes for mothers, ultimately benefiting both parents and children.

Authors

• Sarah Hodgman, Brown University

• Margot Jackson, Brown University