ERIC Number: ED188787
Record Type: RIE
Publication Date: 1980
Reference Count: 0
The Economic Impact of Subsidized Child Care: An Economic Analysis of Valley Child Care from November 1976 to June 1979.
Freis, Ruth; Miller, Miriam
This study examines the specific economic impact on the cost to government of subsidized child care and development services. Data were collected from all 295 families who used Valley Child Care services for more than six months, over a period of two and a half years. The data and results indicated significant economic effects of providing subsidized services. A comparison of government expenditures and revenues between the time families entered the program and the time they left showed that public assistance costs were reduced by almost half and income tax and sales tax revenues were increased by 63%. Over the entire study period: (1) the cumulative increase in family income was close to a quarter of a million dollars; (2) the monthly average income of each family and the monthly average taxes paid increased in almost direct proportion to the length of time in the program; (3) total parent fees paid for child care (based on income) increased by 65%; and the total public funding was offset by 44.5%. Eighty-four percent of families who were eligible for subsidy on the basis of seeking employment were successful in finding jobs. (Author/SS)
Publication Type: Reports - Evaluative
Education Level: N/A
Authoring Institution: Freis & Miller & Associates, Livermore, CA.