CHILD CARE COSTS AND POVERTY AMONG FAMILIES WITH YOUNG CHILDREN
CHILD CARE COSTS AND POVERTY AMONG FAMILIES WITH YOUNG CHILDREN

Summary/Abstract: In this research paper, we consider the extent to which families who incur child care expenses for their young children are pushed below the poverty threshold by those costs using a supplemental poverty measure (SPM) framework. We use Current Population Survey data to determine poverty rates among families with young children who incur child care costs. We then subtract their out of pocket child care from their income to estimate the poverty rate among these families when child care is considered. Our findings suggest that one third of the poverty experienced by these families is a result of child care expenses. Families most often pushed into poverty by child care expenses include households with three or more children, those headed by a single parent, those with a black or Hispanic head of household, and those headed by someone with less than a high school degree or by someone who does not work full time.

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