| Equation | (# parents with participating children) x (% parents using child care solely because of program) x (Q: increase in employment due to child care) x ($ average earnings for a low-income population) x (# years of participation) |
| Explanation | This metric estimates the impact of child care use on increased earnings for parents. Number of parents with participating children: Reported by program. Percentage of parents using child care solely because of program: Estimated by Constellation staff. Q: Increase in employment due to program: [0.09]. Estimated using the formula: Average annual earnings of employed low-income individuals: [$13,500]. Estimated using American Community Survey (ACS) 5-year estimates (U.S. Census Bureau, 2016) for the Twin Cities metropolitan area. If program data on the number of children and their ages per household is available, this can be refined to reflect the actual program population with average annual earnings of low-income population with children in specific age groups using ACS 5-year estimate Census data. Number of years of participation: Estimated by Constellation staff based on available program data. In the absence of program data, we assume one year of additional income. |
| References | Blau, D. M., & Tekin, E. (2007). The determinants and consequences of child care subsidies for single mothers in the U.S.A. Journal of Population Economics, 20, 719–741. Retrieved from: https://link.springer.com/article/10.1007/s00148-005-0022-2 Cannon, J. S., Jacknowitz, A., & Painter, G. (2006). Is full better than half? Examining the longitudinal effects of full-day kindergarten attendance. Journal of Policy Analysis and Management, 25(2), 299–321. doi.org/10.1002/pam.20174 Cascio, E. U. (2009). Maternal labor supply and the introduction of kindergartens into American public schools. Journal of Human Resources, 44(1), 140–170. doi.org/10.3368/jhr.44.1.140 Matthews, H. (2006). Child care assistance helps families work: A review of the effects of subsidy receipt on employment. Center for Law and Social Policy. Retrieved from: https://www.clasp.org/publications/report/brief/child-care-assistance-helps-families-work-review-effects-subsidy-receipt Minnesota Compass. (2018). Proportion of Adults Working. Adults (16-64) below poverty level by employment status, Twin Cities 7-County Region, 1990-2018. Retrieved from: http://www.mncompass.org/workforce/proportion-of-adults-working#7-11327-d U.S. Census Bureau. (2016). American Community Survey 5-year estimates – public use microdata sample, 2012-2016. Generated using Public Use Microdata Area (PUMA) in the Seven-county Twin Cities Metropolitan Area. |
EDU002 Child care leading to increased earnings of parents
In this formula, ES is the effect size of child care on employment. We estimate this at [13.6%] from the average impact reported by these studies: Matthews (2006), Blau & Tekin (2007) who report an impact of 13%, Cannon, Jacknowitz & Painter (2006) who report a 17.3% impact, and Cascio (2009) who reports a 12% impact. The base percentage is the employment rate of the low-income population in the Philips neighborhood in Minneapolis [45%]. This rate is the proportion of individuals for whom poverty status is identified who are employed (Minnesota Compass, 2018).