Complements to Work: Childcare Subsidies and Female Labor Supply

Over seven million households with children under 13 receive a tax subsidy for childcare every year. Although recent proposals would increase these subsidies, there is little research about how taxpayers respond to them. Economists Yana Gallen and Dmitri Koustas will examine the impact of chilcare subsidies on the employment of mothers with young children and childcare spending, wages, and job retention. They will analyze tax data for their study.