The Impact of Virginia’s Child Care Subsidy Program on Women’s Labor Force Participation
Abstract/Description/Artist Statement
This study examines whether Virginia’s 2018 expansion of the Child Care Subsidy Program affected women’s labor supply. The policy increased income eligibility to 85 percent of the State Median Income, reducing childcare costs for low-income families. By lowering the cost of care, the subsidy effectively increases the real wage from working, which may encourage mothers to participate in the labor market.mUsing one-year American Community Survey data from 2012 through 2023, I compare income-eligible and non-eligible women before and after the policy expansion using a Difference-in-Differences framework. The analysis focuses on labor force participation as the primary measure of labor supply. Preliminary results suggest that the 2018 expansion had limited effects on labor force participation among eligible women. These findings contribute to broader discussions about whether childcare subsidies meaningfully increase women’s labor market attachment.
Faculty Advisor/Mentor
Dr Jay K Walker
Faculty Advisor/Mentor Email
j1walker@odu.edu
Faculty Advisor/Mentor Department
Department of Economics
College/School Affiliation
Strome College of Business
Student Level Group
Graduate/Professional
Presentation Type
Poster
The Impact of Virginia’s Child Care Subsidy Program on Women’s Labor Force Participation
This study examines whether Virginia’s 2018 expansion of the Child Care Subsidy Program affected women’s labor supply. The policy increased income eligibility to 85 percent of the State Median Income, reducing childcare costs for low-income families. By lowering the cost of care, the subsidy effectively increases the real wage from working, which may encourage mothers to participate in the labor market.mUsing one-year American Community Survey data from 2012 through 2023, I compare income-eligible and non-eligible women before and after the policy expansion using a Difference-in-Differences framework. The analysis focuses on labor force participation as the primary measure of labor supply. Preliminary results suggest that the 2018 expansion had limited effects on labor force participation among eligible women. These findings contribute to broader discussions about whether childcare subsidies meaningfully increase women’s labor market attachment.