1. 1 III. How Policies Toward Low Income Families Shape Child Care Use Presenter: Lisa Gennetian, MDRC Collaborators: Aletha Huston, Danielle Crosby, and Young Fun Chang, University of Texas at Austin; Edward D. Lowe and Tom Weisner, University of California at Los Angeles; Charles Michalopoulos and Cynthia Miller, MDRC

2. 2 The Analyses Data from random assignment studies testing 21 welfare and employment programs Data from random assignment studies testing 21 welfare and employment programs  Earnings supplements  Mandatory employment services  Time Limits  Expanded child care assistance  20,000 welfare and low-income families Child care outcomes from follow-up surveys Child care outcomes from follow-up surveys  family-level child care decisions and costs  type of care used for children aged 1 to 9 Ethnographic Studies Ethnographic Studies  New Hope: 38 families in Milwaukee  Project on Devolution and Urban Change: 116 families in Cleveland and Philadelphia

3. 3 Findings: Employment, use of care and subsidies Programs increased employment and increased families’ use of paid child care, but had little effect on use of child care subsidies. Programs increased employment and increased families’ use of paid child care, but had little effect on use of child care subsidies. Programs that offered expanded child care assistance increased parents’ subsidy use; lowered out-of-pocket costs; and reduced employment-related problems with child care. Programs that offered expanded child care assistance increased parents’ subsidy use; lowered out-of-pocket costs; and reduced employment-related problems with child care. Many welfare recipients who leave welfare for employment do not report using a child care subsidy. Subsidy use does appear to decrease transition time to employment especially for very low earners. Many welfare recipients who leave welfare for employment do not report using a child care subsidy. Subsidy use does appear to decrease transition time to employment especially for very low earners. From parents’ perspective, flexibility is a crucial component of the child care subsidy system. From parents’ perspective, flexibility is a crucial component of the child care subsidy system.

4. 4 Findings: Type of care arrangements From parent’s perspective, using: From parent’s perspective, using: siblings and relatives, because centers are not open late siblings and relatives, because centers are not open late only close relatives, because of distrust of nonrelatives only close relatives, because of distrust of nonrelatives only center care, because of convenience only center care, because of convenience a patchwork of care, where unregulated or minimally regulated care plays a central role a patchwork of care, where unregulated or minimally regulated care plays a central role Programs with expanded child care assistance increased use of center care more than home-based care; whereas programs without expanded assistance increased use of home-based care more than center care. Programs with expanded child care assistance increased use of center care more than home-based care; whereas programs without expanded assistance increased use of home-based care more than center care. Programs had no effect on use of Head Start. Programs had no effect on use of Head Start.

5. 5 Challenges and open questions What are the direct effects of child care subsidy policies on child care and employment? What are the direct effects of child care subsidy policies on child care and employment? How do these policies affect quality and stability of care? How do these policies affect quality and stability of care? Do and how do child care subsidy policies affect children’s cognitive and socio-emotional development? Do and how do child care subsidy policies affect children’s cognitive and socio-emotional development? How can child care subsidy policies and welfare and employment policies be optimally designed to match family values and routines, as well as unpredictable and nontraditional work schedules? How can child care subsidy policies and welfare and employment policies be optimally designed to match family values and routines, as well as unpredictable and nontraditional work schedules?