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Fluctuation in Child Care Cost Burden: The Effect of Increasing Subsidy Policy Generosity on Parent Decision Making

This study uses secondary analysis of administrative data to examine the amount of variability in the parent share of child care cost experienced by participants in the subsidy program and the effect of cost burden variation on decisions related to continuation in the program and type of care selected. Substantial changes in Oregon child care subsidy policy in October 2007 provided the impetus for this study. Oregon went from having the least to having nearly the most generous subsidy policies in the country and this change provided an opportunity to examine how subsidy policy impacts families. Research questions include: (1) How predictable is the child care cost burden of a parent using a child care subsidy, as indicated by changes in copay, hours authorized, hours billed, and payments made to providers?; (2) To what extent did the 2007 policy change affect the amount of financial assistance and the predictability of parent cost burden associated with the subsidy program?; and (3) To what extent are the October 2007 policy changes associated with changes in type of care and stability of subsidy use?
Resource Type:
Administration for Children and Families/OPRE Projects

Related resources include summaries, versions, measures (instruments), or other resources in which the current document plays a part. Research products funded by the Office of Planning, Research, and Evaluation are related to their project records.

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