According to Erdal Tekin, assistant professor of economics at Georgia state university, child-care subsidies make the difference in helping single mothers move from the welfare rolls to economic self-sufficiency. He stated that simply getting a job often isn't enough to move single mothers out of welfare. Working at a full-time job as opposed to working at a part-time job, makes a great difference in determining whether single mothers on welfare can become economically self-sufficient, as they are more likely to have opportunities to climb up the corporate ladder.
Child-care subsidies are federal funds for childcare available through the childcare development fund (CCDF), which is disbursed by the states. Child-care subsidies are for low-income families and parents must meet income requirements and have a need for care such as employment, school, job training, or seeking work. In the United States, childcare assistance is available to eligible families through state agencies. Each state determines eligibility requirements for families within their states.
Single mothers are generally the main target group for welfare reforms whose main goal is to reduce welfare dependence and to increase employment. Child-care subsidies are especially helpful to single mothers who are below the poverty income level. Research has shown that single mothers who receive child-care subsidies are better able to become self-sufficient and get off welfare.
"The findings of my research suggest that child-care subsidies induce mothers to work at standard jobs." Tekin said. Single mothers who work full-time are more sensitive to the price of day care than those who work part-time. Lower cost child-care enables single mothers to work full-time, and with the wages they earn from working full-time, which is considerably higher than part-time wages, they can afford to pay for child-care services. Therefore, lower child-care costs lead to increased employment and also increased use of paid child-care services among those who are employed full-time. Single mothers who work part time are more likely to rely on their relatives for child-care services than those who work full-time.
It is plausible that receiving child-care subsidies could encourage single mothers to work at full-time jobs with standard business hours. Says Tekin, "It is important to encourage low-income parents to seek jobs with a potential to move them up the income ladder." These mothers would no longer have to worry about being able to afford paying for child-care services, and can concentrate on their careers. Furthermore, such jobs are more likely to provide better pay, more benefits, and also increased opportunities for career advancement as opposed to part-time jobs, which offer little or no benefits. This would enable single mothers to become self-sufficient and get off welfare.
On the other hand, not everyone is motivated enough to want to climb up the corporate ladder. Some single mothers might be content to work part-time jobs for low wages as long as they continue to receive child-care subsidies and welfare. This may be due to the fact that part-time jobs may not be financially rewarding enough to induce them to choose employment over the more attractive alternative of welfare. . For that reason, appropriate measures have to be taken by the state government to ensure that recipients of child-care subsidies are motivated to seek full-time employment in order to better their economic situation and get out of the welfare system.
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