Date of Graduation

Spring 2018

Document Type

Honors Research Project

Degree Name

Bachelor of Arts

Major

Economics

Research Sponsor

Francesco Renna

First Reader

Francesco Renna

Second Reader

Steven Myers

Abstract

The allocation of funding toward childcare has historically been debated due to conflicting views on the effect childcare subsidies have on low-income, single mothers. Some suggest that federal, state and local funding could put the money allocated for childcare subsidies to better use – or perhaps that there is no need for additional federal, state and/or local funding. However, there is sufficient evidence that children raised in a family structure with low-income single mothers may face long-term negative consequences not only socially, but also economically. An increase in labor force participation rates as a result of childcare subsidies not only enables these low-income single mothers to potentially earn more than before, but also decreases the burden placed on taxpayers to support welfare programs. This paper observes the effect of childcare subsidies on low-income, single mothers across race.

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