Pushing the Methodological Envelope An Interdisciplinary Approach to Research on Subsidized Child Care: Econometric Models that Draw on Qualitative and Quantitative Approaches By Deanna Schexnayder and Laura Lein, PIs Julie Beausoleil, Daniel Schroeder and Ying Tang University of Texas at Austin A presentation from the “Devolution of Subsidized Child Care in Texas”, a field initiated research project funded by the Child Care Bureau, U.S. Department of Health and Human Services, Welcome to the Marshall Center PowerPoint Template. To add text, click on the visible text, delete the template titles, and enter your data. To add additional slides, use Ctrl + M. You can modify the slide layout (i.e. select a pre-set layout for tables instead of a layout for text) by right-clicking on the slide background and selecting Slide Layout. Commonly used sample layouts are included. To delete slides you don’t want to use, choose Delete Slide from the Edit menu. You can also Duplicate Slides through the Insert menu. Pre-set slide transitions are included. They can be changed through the Slide Show menu. Finally, to hide comment fields (like this box), select Comments from the View menu. Please Sarah Looney at if you have any questions. Welcome to the Marshall Center PowerPoint Template. To add text, click on the visible text, delete the template titles, and enter your data. To add additional slides, use Ctrl + M. You can modify the slide layout (i.e. select a pre-set layout for tables instead of a layout for text) by right-clicking on the slide background and selecting Slide Layout. Commonly used sample layouts are included. To delete slides you don’t want to use, choose Delete Slide from the Edit menu. You can also Duplicate Slides through the Insert menu. Pre-set slide transitions are included. They can be changed through the Slide Show menu. Finally, to hide comment fields (like this box), select Comments from the View menu. Please Sarah Looney at if you have any questions.

Econometric Analysis that Builds on Four Data Sources Research Questions Overview of Texas Policy Environment Four Data Streams 1. Policy Analysis 2. Interviews with Board Staff 3. Administrative Data 4. Market Rate Survey Data Econometric Analysis Conclusions

Research Questions 1. How do local child care policies in Texas vary following the devolution of responsibilities for child care policies to the local workforce boards? 2.What is the process by which local policy changes governing the provision of publicly subsidized child care are decided upon and implemented? This presentation addresses the following questions: 3. Which changes in local child care markets are statistically associated with local policy variations? 4. Which changes in the patterns of child care use and family outcomes are statistically associated with local policy variations?

Overview: The Research Context In the late 1990s Texas devolved the management of its child care subsidy system and responsibility for child care policies to 28 workforce boards. 1.Panhandle 2.South Plains 3.North Texas 4.North Central 5.Tarrant County 6.Dallas County 7.North East Texas 8.East Texas 9.West Central Texas 10.Upper Rio Grande 11.Permian Basin 12.Concho Valley 13.Heart of Texas 14.Capital Area 15.Rural Capital 16.Brazos Valley 17.Deep East Texas 18.South East Texas 19.Golden Crescent 20.Alamo Area 21.South Texas 22.Rural Coastal Bend 23.Hildalgo 24.Cameron County 25.Texoma 26.Central Texas 27.Middle Rio Grande 28.Gulf Coast

Four Streams of Data: 1. Policy Analysis : Policy Change over Time at Three Levels Federal Change (Effective Date) State Legislative Change (Effective Date) TWC Rules Change (Date of Issuance) August, 1996, states gain the flexibility to manage and target child care assistance; allows states to transfer up to 30% of TANF funds to CCDF, of which 10% may be for SSBG. Allows direct spending of TANF on child care. 1995, HB 1863, Consolidation of workforce programs and creation of 28 Local Workforce Development Boards. Priority to Choices participants. September 1997, SB 459: All LWDBs should include a child care representative. September 1997 (ACT Waiver interaction): Exemption from mandatory employment services is changed for parents with youngest child of age 5 to age 4. Fall State authorized local workforce development board to begin setting some subsidy policy 2003, TWC freezes reimbursement rates for child care providers Example of work sheet

Local Policy Changes: The Fourth Level Example: Changes in Income Eligibility Policies

2.Interviews with Board Staff: Changes over Time FIRST INTERVIEW QUESTIONS Program Variables –Eligibility –Access to services –Co-payments –Reimbursement rates –Types of care used Program Administration and Operation –Policy-making process –Financial flow –Board oversight process –Interagency collaboration –Special needs of Hispanic community CODING CATEGORIES TOPIC #1 - Board, board structure, board dynamics and child care contractors –Board’s basic facts/history –Board’s experience of devolution (general) –Board size and membership –Child Care Program Manager (CCPM) –Child care committee (CCC) –Child care advisory committee (AC) –Child care contractors (CO Topic #2 - Quality Topic #3 - Funding Topic # 4 - Policy Making

3. A. Administrative Data: Workforce Development Board Progress Example of data: Financial Allocations to Local Boards

3.B. Administrative Data: Understanding Changes in the Characteristics of Subsidy Recipients over Time Example of data

4. Market Rate Survey Data: The Market -- Rates and Supply Example of Results from Statewide Market Rate Survey showing rates for a workforce board over time

Econometric Analysis: Child Care Subsidy Dynamics

Econometric Analysis: Family Economic Outcomes Equation F-1: Earnings of subsidy recipients Equation F-2: Exit from employment among subsidy recipients Equation F-3: Entry or re-entry to TANF Level of AnalysisFamily UniverseFamilies with employed case heads receiving transitional or income- eligible subsidies Subsidized families with employed case heads Families receiving subsidized care Dependent VariableQuarterly earnings while on subsidy Exit from employmentTANF Entry Independent VariablesPersonal characteristics and benefit histories, policy variables, indicators of type and quality of care (i.e., share of TRS providers) Personal characteristics and benefit histories, co- pay, other policy variables, indicators of type and quality of care Personal characteristics and benefit histories, Co-pay, other policy variables, indicators of type and quality of care Equation StructureLinear or Log-Linear Regression Event History--Boskin- Nold Time DimensionOne observation per subsidized and employed quarter. Maximum follow-up period. Event history methods account for censoring. One observation per family per month while receiving subsidy and not on TANF

Econometric Analysis: Child Care Market Outcomes Equation M-1: Providers receiving subsidy as share of total formal market Equation M-2: To what share of the market does a child care subsidy provide access? Equation M-3: What predicts provider turnover? Level of AnalysisProviderBoardProvider UniverseAll providers, all years All boards, certain types of care All counties, all providers Dependent VariableBinary indicating whether provider received a subsidy in a given month Share of market accessible with subsidy Provider turnover Independent Variables of Interest Geographic, provider, and policy variables Size of local child care market, geographic characteristics Geographic, provider, and policy variables Equation StructureLogistic Regression Event History-- Boskin Nold Time DimensionMonthly observations Other Comments and Notes

Conclusions: Benefits of Multiple Methods Include range of types of variables from institutional to household, and from financial to attitudinal More confidence that specific issues raised in interviews and case studies represent the universe Ability to view the same situation from multiple view points and explore multiple outcomes at different levels Issues identified in interviews can be incorporated in regressions and tested for statistical significance

For More Information Use this page as the final slide in your presentation. Deanna Schexnayder Laura Lein On the Web: