Mk. Meyers et al., Child care in the wake of welfare reform: The impact of government subsidies on the economic well-being of single-mother families, SOCIAL SE R, 75(1), 2001, pp. 29-59
Using microsimulation techniques to estimate the impact of welfare reform i
n New York, we find that 5 years after federal and state reforms child-care
use and costs will rise substantially and families will bear most of these
costs. When family incomes are adjusted for child-ca;e costs, most single-
mother families will continue to he poor even with greater earnings, the Ea
rned Income Taw Credit, and food stamps. The distribution of child-care cos
ts between government and families, and the implications for poverty, will
depend on the extent to which government subsidizes the child-care costs of
single mothers.