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Family Leave and Child Care Policy Across States: Implications for Labor Force Participation Over Time

By Kelly Albert

This paper investigates the impact of child care subsidies, maternity and paternity leave policy, and Earned Income Tax Credits on labor force participation rates at the state level, utilizing data sets from the Bureau of Labor Statistics and Current Population Survey. Results suggest labor force participation increased with federal maternity and paternity leave, increased child care subsidy expenditures, and Earned Income Tax Credits. Head Start expenditures, state maternity leave, and Temporary Disability Insurance have negative impacts. These findings have wider policy implications; altering combinations of family leave and child care policy could help improve employment outcomes of parents.

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Advisors: Dr. Hugh Macartney, and Dr. Grace Kim | JEL Codes: J13, J18, J22

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