ERIC ED442537: Parents Receiving Subsidized Child Care: Where Do They Work?

27 Pages·1996·0.47 MB·English

by  ERIC

DOCUMENT RESUME
ED 442 537
PS 026 637
AUTHOR
Lee, Christine W.; Ohlandt, Stephanie J.; Witte, Ann Dryden
TITLE
Parents Receiving Subsidized Child Care: Where Do They Work?
INSTITUTION
Florida Children's Forum, Tallahassee.
Department of Health and Human Services, Washington, DC.;
SPONS AGENCY
National Science Foundation, Washington, DC. Div. of
Undergraduate Education.; Carnegie Corp. of New York, NY.;
Florida State Dept. of Health and Rehabilitative Services,
Tallahassee.
PUB DATE 1996-00-00
26p.; Additional funding provided by Wellesley College,
NOTE
Department of Economics.
Reports
PUB TYPE Research (143)
MF01/PCO2 Plus Postage.
EDRS PRICE
*Day Care; Early Childhood Education; Employed Parents;
DESCRIPTORS
*Employment Patterns; Family Work Relationship; Labor
Market; *Low Income Groups; *Welfare Recipients; Welfare
Services
Florida (Duval County); Florida (Pinellas County); Florida
IDENTIFIERS
(Tallahassee); *Subsidized Child Care Services; Welfare
Reform; *Working Poor
ABSTRACT
To stimulate two-generational self-sufficiency for
low-income families and follow through on welfare reform guidelines on term
limits and work requirements, it is necessary to acquire data on the
low-income labor market and the low-income child care market, as well as on
the interactions of these markets. This study investigated the type of
employment available for the working poor in three diverse areas of Florida
on the premise that this information can provide an important context for the
welfare-to-work transition required by welfare reform. Employment information
was downloaded from the Child Care Management System databases of the Child
Care Coordinating Agencies in Duval County, Pinellas County, and the Big Bend
area in December 1995. Findings indicated that the working poor in the sample
received federal, local, and state subsidies to help them pay for child care
while they work. Most subjects were employed in retail trade, principally
fast-food restaurants and grocery stores. After retail trade, employment
patterns varied for each study area, with major employment including health
services, business services, and public administration. (Statistics for
employment patterns in each area are appended.)
(JPB)
Reproductions supplied by EDRS are the best that can be made
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I
U.S. DEPARTMENT OF EDUCATION
Off ice of Educational Research and Improvement
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CENTER (ERIC)
his document has been reproduced as
received from the person or organization
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0 Minor changes have been made to
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6 Points of view or opinions stated in this
document do not necessarily represent
official OERI position or policy.
Parents Receiving Subsidized Child Care:
Where Do They Work?
Christine W Lee
Stephanie J. Ohlandt
Ann Dryden Witte
Department of Economics
Wellesley College
Department of Economics
Florida International University
National Bureau of Economic Research
BEST COPY AVAILABLE
2
Parents Receiving Subsidized Child Care:
Where Do They Work?
Christine W Lee
Department of Economics
Wellesley. College
Stephanie J. Ohlandt
Department of Economics
Wellesley College
Ann Dryden Witte
Department of Economics
Wellesley College
Department of Economics
Florida International University
National Bureau of Economic Research
Parents Receiving Subsidized Child Care:
Where Do They Work?
Funders
United States Department of Health and Human Services,
Administration for Children and Families
National Science Foundation
Wellesley College,
Department of Economics
Starting Points, Carnegie Corporation
Florida Department of Health and Rehabilitative Services
Florida Children's Forum
Data Collected by
Big Bend Community Coordinated Child Care
Jacksonville Children's Commission
Community Coordinated Child Care of Pinellas
Research Team
Christine W. Lee
Stephanie J. Ohlandt
Ann Dryden Witte
Acknowledgments
The Research Team would like to thank Susan Muenchow, Executive Director, Florida
Childfen's Forum (FCF) who provided the inspiration for this project and Lisa Ann Benham,
Research Coordinator, Florida Children's Forum, who provided us with the data we used and
provided valuable insights throughout the project. We would also like to thank the many indi-
viduals at the TDS Group and the child care coordinating agencies in the study areas who
helped make this project possible. Muenchow, Benham, and Pia Divine and others attending the
meeting, of the Administration for Children and Families (ACF) Research Consortium provided
valuable insight, comments, and suggestions. The support of the funders in no way indicates
their concurrence with our analysis or conclusions. We alone are responsible for all errors.
Parents Receiving Subsidized Child Care: Where Do They Work?
Copyright 1996, Florida Children's Forum
-2-59-East-Seventh-AT4ltatissee, Florida 3230B
c/fd Am/43
ArriM YsWea. )
4
Table of Contents
SUMMARY OF FINDINGS
1
DATA METHOD AND ANALYSIS
3
PINELLAS COUNTY (ST. PETERSBURG)
5
6
RETAIL TRADE
6
HEALTH SERVICES
7
PROFESSIONAL AND SOCIAL SERVICES
7
BUSINESS SERVICES AND REPAIRS
8
EDUCATIONAL SERVICES
8
PUBLIC ADMINISTRATION
DUVAL COUNTY (JACKSONVILLE)
9
10
RETAIL TRADE
10
BUSINESS SERVICES AND REPAIRS
10
HEALTH SERVICES
11
PROFESSIONAL AND SOCIAL SERVICES
11
PERSONAL SERVICES
FINANCE, INSURANCE, AND REAL ESTATE
11
12
PUBLIC ADMINISTRATION
12
EDUCATIONAL SERVICES
12
COMMUNICATION AND PUBLIC UTILITIES
BIG BEND AREA (TALLAHASSEE)
13
14
RETAIL TRADE
14
PUBLIC ADMINISTRATION
15
PROFESSIONAL AND SOCIAL SERVICES
15
PERSONAL SERVICES
15
EDUCATIONAL SERVICES
16
BUSINESS SERVICES AND REPAIRS
CONCLUSION
17
APPENDIX
19
FOOTNOTES
21
23
SOURCES
SUMMARY OF FINDINGS
Information
about who
employs
Welfare reform with its emphasis on Florida: (1) Duval County (Jackson-
parents
ville), (2) Pinellas County (St. Peters-
term limits and work requirements
receiving child
burg) and (3) the Big Bend area [Leon
makes understanding the low-income
care subsidies
(Tallahassee), Gadsden, Jefferson,
labor market and the low-income child
provides an
Liberty, Madison, Taylor, and Wakulla
care market vitally important. We need
important
Counties]. These areas reflect a wide
to understand both markets and the
way in which they interact if we are spectrum of child care issues.
context for the
going to stimulate two-generational
welfare-to-
Jacksonville is an old South/New
self sufficiency for low-income fami-
work reform
South city on the Atlantic Coast of
lies.
required by
North Florida. It has long been a
welfare
transportation, finance, and insurance
Effective policy that supports two-
reform.
generational self sufficiency requires center and has a substantial military
presence. St. Petersburg, midway
knowledge of how both the content and
administration of child care subsidy
down Florida's Gulf Coast, has been a
programs influence parental employ-
destination for tourists and retirees for
ment and child development. Child
many years. It also has substantial
care subsidies are frequently essential
employment in manufacturing, finance,
to allow primary caregivers to work
insurance, and real estate (see Table 1
outside the home. Child care subsidies or Chart 1 of the Appendix). Tallahas-
are also frequently important to help
see, in the Florida Panhandle, is the
low income families afford a level of
state capital and has two state universi-
ties. The six counties that surround
care sufficient to build a new genera-
tion of productive workers.
Tallahassee are rural with characteris-
tics similar to the rural counties of
Since enactment of the Family Support
South Alabama.
Act of 1988, programs that provide
child care subsidies have grown in size
While each of these areas has unique
and diversity. The federal emphasis
characteristics, we believe that our
has been primarily on using child care
results as a whole provide valuable
to help welfare families achieve
insights regarding the type of employ-
economic self sufficiency. At the same
ment available for the working poor.
time, some programs, such as the
The working poor in our sample are
Child Care and Development Block
"privileged"; they received federal,
Grant, have provided child care to
local, and state subsidies to help them
low-income working families to help
pay for the care of their children while
them avoid welfare dependency. As
they work. Many other poor families
far as we are aware, there is no system-
who are working and struggling to
atic information on who employs the make ends meet have no help with
child care expenses. For example, in
parents receiving these various child
care subsidies. Such information can
mid December 1995, working poor
families eligible for child care subsi-
provide an important context for the
dies in our study area were as likely to
welfare-to-work transition required by
be on waiting lists for care as they
welfare reform.
were to be receiving it.
As a foundation for the Tri-State Child
To summarize briefly the results for
Care Research Partnership, we have
our three study areas, retail trade, with
worked with Child Care Coordinating
fast food and other restaurants pre-
Agencies in three diverse areas of
6
After retail trade, we find unique
dominating, provides more employ-
In each of the
patterns for each study area. In
ment for workers receiving child care
study areas,
Pinellas, health services, predomi-
subsidies than does any other type of
we found
nantly nursing homes, is the next most
industry in all three of our study areas.
unique
important industrial sector; this is a
Fast food chains are a major source of
employment
reflection of the large presence of
employment with McDonald's provid-
patterns for
retirees in the area. In Duval County,
ing from five to ten percent of the
workers
business services, primarily agencies
restaurant employment for workers
receiving
providing temporary personnel,
receiving child care subsidies in our
subsidized
three study areas. Cashiering and
assumes the number two spot and, in
child care.
the Big Bend area, public administra-
bagging groceries is another important
activity with the major regional tion, primarily employment at Florida's
grocery chains, Publix and Winn-
Department of Health and Rehabilita-
Dixie, providing substantial amounts
tive Services, assumes the next most
of employment.
important employer role.
7
DATA METHOD AND ANALYSIS
Workers
receiving
subsidized
We downloaded all of the employment
industries employed very large propor-
child care are
information available in the Child Care
tions of workers receiving child care
overrepresented
Management System (CCMS) data-
subsidies. To determine whether this
in the retail
bases of the Child Care Coordinating
observation was confirmed, we assigned
trade sector.
Standard Industrial Classification (SIC)
Agencies in Duval County, Pinellas
codes to each employer.'
County and the Big Bend area (seven
counties) in mid-December 1995.
In order to understand our study areas,
we obtained socioeconomic data includ-
The name of the employer for workers
ing detailed employment data from the
receiving child care subsidies was
1994 County and City Data Book (US
collected by an Eligibility Counselor as
Department of Commerce, 1995) and
part of the Parent Interview which is
USA Counties: 1994 (US Department of
used to determine eligibility for child
Commerce, 1994) at the county level for
care subsidies.' Parent Interviews
each of the study areas. These sources
began on January 4, 1992, in Duval
contained employment by SIC codes and
County, on January 21, 1992, in Pinellas
allowed us to compare the employment
County and on June 30,1992, in the Big
patterns of all workers in these study
Bend area. Thus we have information on
areas with the employment patterns of
the employers of workers receiving child
workers receiving child care subsidies.
care subsidies for over three years in
each of our study areas.
The retail trade industry employs the
highest percentage of both the low-
The child care subsidy programs
income segment of the labor force which
serving the largest number of working
receives subsidized child care and the
families in these three areas in 1995
total labor force in each of the three
were the Project Independence Pro-
metropolitan regions. This industry
gram (which was Florida's welfare-to-
includes building and garden suppliers,
work program at that time), the Transi-
general merchandise stores, food stores,
tional Child Care Program (which
automotive dealers and service stations,
apparel and accessory stores, furniture
guarantees a year of child care to
and home furnishing stores, eating and
former AFDC recipients who are
drinking places, and other miscellaneous
working but earning less than 185% of
retail stores. Workers receiving subsi-
the federal poverty level), the AFDC
dized child care are overrepresented in
Employed Program (serving those who
the retail industry. For example, in
are working but still receiving some
Jacksonville, 27% of the subsidized
AFDC), and the Income Eligible
child care receiving labor force is
Program (serving those who are working,
employed in retail, whereas only 16% of
whether or not they are former AFDC
the total labor force in Duval County is
recipients, and who have a maximum
employed in retail. Further breakdowns
family income of 150% of the federal
of the retail industry reveal that certain
poverty level to enter the program and
businesses are responsible for employing
185% to remain in the program.)
a large portion of the workers receiving
subsidized child care. We will continue
We began by creating frequency distribu-
to examine these breakdowns by indus-
tions of employers for each of the three
try and by company according to each
study areas.' This revealed substantial
city and surrounding region. (Please
concentrations of workers receiving child
refer to the Appendix for tables and
care subsidies at certain places of employ-
graphs of county employment by
3
ment. Further, it appeared that certain
industry).
8
PINELLAS COUNTY (ST. PETERSBURG)4
Over 12% of
all workers in
Pinellas
As can be seen in Table 1 of the
ing; construction; and finance, insur-
County are
Appendix, Pinellas County has more
ance, and real estate is lower for
employed in
employment in manufacturing; retail
workers receiving child care subsidies
manufacturing,
trade; finance, insurance, and real
than for other workers in Pinellas
yet less than
estate; and health services than the
County. For example, while over 12%
4% of those
State of Florida as a whole. The
of all Pinellas workers are employed
who receive
county has less employment in trans-
in manufacturing, less than 4% of
portation and educational services
subsidized
workers receiving child care subsidies
than does the state as a whole. The
are employed in this sector.
child care are
concentration of employment in health
employed in
Figure 1 provides a comparison of
services reflects the large number of
this sector.
employment for the three industries in
retirees residing in the county, and the
which workers receiving child care
low concentration in transportation
subsides are most under represented
and education reflects the county's
and the three industries in which they
reliance on transportation and educa-
are most over represented. The
tional institutions in adjoining Hills-
Appendix provides comparisons of
borough County.
employment patterns for a broader
A comparison of the employment
spectrum of industries. Figure 1
pattern for Pinellas County's overall
shows clearly that workers receiving
labor force and the employment
child care subsidies are concentrated
pattern for Pinellas workers receiving
in the lower paying service industries
child care subsidies revealed substan-
while the overall Pinellas County labor
tial differences. As can be seen in
force finds substantial employment in
Figure 1, employment in manufactur-
manufacturing, construction and
EMPLOYMENT COMPARISON: PINELLAS COUNTY'S OVERALL LABOR FORCE &
WORKERS RECEIVING SUBSIDIZED CHILD CARE
25.36
21.98
08
Health
Personal
Retail Trade
Manufacturing Construction
Finance,
Services
Services
Insurance, &
Real Estate
OPinellas Workers with Subsidies
Florida Labor Force
OPinellas Labor Force
5
FIGURE 1
9
higher paying services. Additionally,
Workers in the
child care subsidies. Publix and
the tables and figures in the Appendix
health services
Winn-Dixie (two large regional
show that employment for the subsi-
grocery store chains) provide employ-
sector
dized child care receiving labor force
ment for more than one-half of
represent 22%
workers receiving child care subsidies
of Pinellas County is negligible in
of all workers
employed by food stores and over 3%
transportation, communication and
receiving
of employment for the entire subsi-
public utilities, and wholesale trade
subsidized
dized work force. Department stores
while these industries provide signifi-
child care in
and other retail stores employ the
cant employment for the overall
Pinellas
remainder (see Figure 3).
Pinellas labor force.
county.
HEALTH SERVICES
RETAIL TRADE
The health services sector employs 22%
In Pinellas County (see Figure 2),
of workers receiving child care subsi-
25% of workers receiving child care
dies, while it provides employment for
subsidies are employed in retail trade,
only 9.7% of Pinellas County's total
compared to 20% of the total labor
labor force. Nursing homes account
force in Pinellas County. More than
for much of the employment in this
one third of these workers receiving
sector. To be specific, nursing homes
subsidized child care are employed in
employ 40% of workers receiving
eating places while another one fifth
child care subsidies in the health
work in food stores. Major national
industry and 8.8% of subsidized child
chains, such as McDonald's, Check-
care receiving workers overall. A few
ers, Burger King, and Wendy's,
nursing homes (e.g., the Country
provide 42% of all eating place
Place of Clearwater and Swanholm)
employment and over 4% of overall
provide substantial employment for
employment for workers receiving
subsidized workers. Hospitals,
EMPLOYMENT BY INDUSTRY OF WORKERS RECEIVING SUBSIDIZED CHILD CARE IN
PINELLAS COUNTY
Professional & Social
Other (1)
(11.1%)
Services (10.3%)
Finance, Insurance,
Public Administration (4.8%)
& Real Estate (4.6%)
Educational
Services (4.9%)
Business Services &
Repairs (8.1%)
Retail Trade
(25.3%)
Personal Services
(9.1%)
Health Services (21.9%)
(I) Agriculture, Forestry, and Fishing; Mining; Construction; Manufacturing (3.5%); Transportation; Communica-
tion and Public Utilities; Wholesale Trade; and Entertainment and Recreation Services
(2) Professional and Social Services other than Health and Educational Services
6
FIGURE 2
10
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