Low-Income Families and the Cost of Child Care
State Child Care Subsidies, Out-of-Pocket Expenses and the Cliff Effect
Document date: December 19, 2013
Released online: December 23, 2013
Child care subsidies provide assistance for low-income families, often to support work activities. Depending on the state of residence, families' out-of-pocket expenses can vary widely, both while receiving the subsidy and at the point when families no longer qualify for assistance. In this paper, we look at how state policies affect families' child care expenses, focusing on the point when families no longer qualify for assistance. We find that when families' incomes increase just enough to make them ineligible for child care assistance, the potential increase in out-of-pocket child care expenses can be much greater than the increase in income.
Other Publications by the Authors
Usage and reprints: Most publications may be downloaded free of charge from the web site and may be used and copies made for research, academic, policy or other non-commercial purposes. Proper attribution is required. Posting UI research papers on other websites is permitted subject to prior approval from the Urban Institute—contact email@example.com.
If you are unable to access or print the PDF document please contact us or call the Publications Office at (202) 261-5687.
Disclaimer: The nonpartisan Urban Institute publishes studies, reports, and books on timely topics worthy of public consideration. The views expressed are those of the authors and should not be attributed to the Urban Institute, its trustees, or its funders. Copyright of the written materials contained within the Urban Institute website is owned or controlled by the Urban Institute.