Understanding the Relationship Between Instability in Child Care and Instability in Employment for Families With Subsidized Care

Abstract

Through the federal child care funding and unspent Temporary Assistance to Needy Families funds, states provide subsidies for child care to some employed parents who are income-eligible. Subsidies cannot alter labor market conditions or stabilize low-wage jobs, but they can stabilize child care arrangements. With stable child care, policy makers hope parents’ workforce participation will be more stable. While researchers agree there is a strong relationship between stability in child care and stability in employment, how they are related is not clear. What drives instability in child care and instability in employment, and does instability in one arena affect the other? How might subsidies affect stability in either arena? Using data from in-depth interviews with 44 parents who received child care subsidies in Oregon, we explore the nuanced and often complex relationship between child care stability and employment stability and the effect of subsidies on that stability.