ABSTRACT
Using data collected from a diverse set of experimental programs for low-income parents that took place through out the late1980s to the mid-1990s, we examine how welfare and employment policies affect the child-care decisions of single parents with very young children. Policy components that encourage employment (e.g., earnings supplements and employment mandates) appear to affect the amount of care used for very young children, while policies designed to increase the access and affordability of care appear to affect the type of care. When programs offer more comprehensive, efficient, or generous child-care assistance, families use more center-based care and less home-based care. For several reasons, the majority of low-income working families rely on home-based arrangements. These findings suggest that expanded child-care assistance within income and employment policies can enhance the otherwise limited options available to low-income parents.
