Tuesday, October 12, 2021

Measuring Impact of Child Care Subsidies on Working Moms

Child care subsidies help married moms continue working, bring greater pay equity. Learn more in this America Counts story.
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Measuring Impact of Child Care Subsidies on Working Moms

Federally funded child care subsidies may help working married mothers stay in the labor force and narrow the pay gap between spouses, according to a new U.S. Census Bureau working paper.

The study showed the subsidies increased the likelihood working married mothers would stay in the labor force after four years. It also suggests positive impacts on pay equity: subsidies helped these mothers earn a more equal share of their household's total earnings.

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The findings are based on data from the Child Care and Development Fund (CCDF), Social Security Administration (SSA) and the Census Bureau's Current Population Survey (CPS).

The theory behind child care subsidies is simple: Provide working parents financial assistance to help pay for child care and they'll be more likely to keep working.

Continue reading to learn more about:

  • A consistent trend
  • Labor force benefits
  • What about socio-economic differences?

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