Childcare Subsidies and the Transition from Welfare to Work *

Authors

  • Sandra K. Danziger,

    Corresponding author
      * * Dr. Sandra Danziger, University of Michigan, Program on Poverty and Social Welfare Policy, 1015 East Huron, Ann Arbor, MI 48104 (sandrakd@umich.edu).
    Search for more papers by this author
  • Elizabeth Oltmans Ananat,

  • Kimberly G. Browning


  • *

    A previous version of this paper was presented at the Conference “From Welfare to Child Care: What Happens to Infants and Toddlers When Single Mothers Exchange Welfare for Work?” on May 17, 2001, Washington, D.C. Support for the Women's Employment Study at the University of Michigan is provided by the Joyce Foundation, the Charles Stewart Mott Foundation, the John D. and Catherine T. MacArthur Foundation, the Office of the Vice President for Research, University of Michigan, and the National Institute of Mental Health (R24-MH51363). The authors wish to thank Sheldon Danziger, Deborah Curry, Peter Gottschalk, Charles Overbey, Elizabeth Peters, Kristin Seefeldt, Karen Tvedt, Hui-Chen Wang, and anonymous reviewers for comments on a previous draft.

* * Dr. Sandra Danziger, University of Michigan, Program on Poverty and Social Welfare Policy, 1015 East Huron, Ann Arbor, MI 48104 (sandrakd@umich.edu).

Abstract

We address how childcare subsidies help in the welfare-to-work transition relative to other factors. We examine how the policy operates, whether childcare problems differ by subsidy receipt, and the effect of subsidy on work. Data are from a random sample panel study of welfare recipients after 1996. Findings show that subsidy receipt reduces costs but not parenting stress or problems with care. It predicts earnings and work duration net of other factors. Increased use of subsidies by eligible families and greater funding for child care would help meet the demand for this important support for working-poor families.

Ancillary