Subsidy Policies and the Quality of Child Care Centers Serving Subsidized Children

Brief

Subsidy Policies and the Quality of Child Care Centers Serving Subsidized Children

Abstract

This policy brief investigates the relationship between child care subsidy policies and the quality of centers participating in the subsidy program. We find that the quality of these child care centers is higher in states with higher reimbursement rates and higher tiered reimbursement rates, even after controlling for a variety of other state differences. We hope that this exploratory analysis, based on statistical analysis of the 2012 National Survey of Early Care and Education (NSECE), will encourage policymakers, administrators, and researchers to consider how subsidy rates and payment policies can influence the quality of child care supported through public subsidies.

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