A Benefit-Cost Analysis of Child Care Subsidy Expansions: The New York State Case

Abstract

Proposals to expand child care assistance have widespread support at the national and state levels. This paper uses a novel approach to estimate the benefits and costs of providing child care subsidies to families up to three times the federal poverty line while supplementing child care worker compensation—a reform recently proposed in New York State. It estimates a net present value of $12.4 billion in yearly social benefits relative to a yearly cost of $1.6 billion. Further, it examines alternative program designs including more generous income eligibility and child care worker wage supports, along with other sensitivity analyses.

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Suggested Citation:

Hartley, Robert Paul, Irwin Garfinkel, Elizabeth Ananat, Sophier Collyer, Buyi Wang, and Christopher Wimer. 2022. “A Benefit-Cost Analysis of Child Care Subsidy Expansions: The New York State Case.” Working Paper. New York: Center on Poverty and Social Policy at Columbia University.