Childcare Subsidies and Child Skill Accumulation in One- and Two-Parent Families

Emily Moschini

American Economic Journal: Macroeconomics, 2023, vol. 15, issue 1, 475-516

Abstract: I examine the role of family structure and childcare subsidies in child skill accumulation. I establish empirically that skill accumulation is more responsive to childcare price for one-parent families than for two-parent families. I analyze the effects of childcare subsidies in a model featuring endogenous family formation, parental altruism, and a baseline subsidy resembling that of the United States. I find that eliminating this subsidy generates welfare losses of 1.63 percent of lifetime consumption, that equilibrium adjustments act to mitigate these losses, and that increasing uptake among one-parent families yields the highest welfare gains per additional recipient.

JEL-codes: I21 I26 J12 J13 J24 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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DOI: 10.1257/mac.20200282

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