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<p>We examine the impact of the Child and Dependent Care Tax Credit (CDCTC) on fertility and birth outcomes. The CDCTC subsidizes child care for working families, thus potentially incentivizing families to have more children or increase investment in child quality. Using the Panel Study of Income Dynamics and the National Center for Health Statistics’ Natality data, we analyze the effects of state-level CDCTC policies on fertility and birth outcomes. We find that the CDCTC has no effects on the probability of having a birth or on birth outcomes; however, the CDCTC does increase labor force participation rates for married mothers.</p>

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Assessing the effects of child-care subsidies on fertility and birth outcomes: evidence from the child and dependent care tax credit

  • 期刊论文

  • 出版模式：

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  • 发表日期：

    2026年7月7日

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  • Susan Averett,
  • Yating Gong,
  • Yang Wang

摘要

We examine the impact of the Child and Dependent Care Tax Credit (CDCTC) on fertility and birth outcomes. The CDCTC subsidizes child care for working families, thus potentially incentivizing families to have more children or increase investment in child quality. Using the Panel Study of Income Dynamics and the National Center for Health Statistics’ Natality data, we analyze the effects of state-level CDCTC policies on fertility and birth outcomes. We find that the CDCTC has no effects on the probability of having a birth or on birth outcomes; however, the CDCTC does increase labor force participation rates for married mothers.