CHILD-CARE SUBSIDIES, QUALITY OF CARE, AND THE LABOR SUPPLY OF LOW-INCOME, SINGLE MOTHERS

We examine the effects of child care subsidies on the labor supply decisions of low-income mothers and on the quality of care their children receive using newly gathered data on two programs that subsidize the child care expenditures of families in Kentucky. We find that single mothers who receive child care subsidies are more likely to be employed and are generally more satisfied with the care their children receive, but subsidies have little effect on hours worked.