Degree Name
BS
Department
Economics
College
Family, Home, and Social Sciences
Defense Date
2023-07-27
Publication Date
2023-08-04
First Faculty Advisor
Dr. Riley Wilson
First Faculty Reader
Dr. David Sims
Honors Coordinator
Dr. John Stovall
Keywords
childcare, tax credit, female labor participation, childcare tax credit
Abstract
Childcare is an expensive commodity in the United States. However, childcare allows parents the flexibility to work while having children. This paper focuses on the Child and Dependent Care Tax Credit (CDCTC), a tax-related program intended to reduce the stress of childcare costs that could indirectly increase the female labor participation rate in each state. The paper hypothesizes that states with larger CDCTC values show higher female labor participation rates. It reviews budget constraint theory and previous papers that support the hypothesis and outlines the empirical strategy used in the research. It tests how the CDCTC affects female labor supply and income and provides assumptions and setbacks that may affect the results. Finally, it gives an overview of tax credit policy recommendations that can assist families with childcare needs and change labor-force outcomes.
BYU ScholarsArchive Citation
Webster, Emma K., "Understanding the Causal Relationship Between State-Level Childcare Tax Credits and Female Labor Participation" (2023). Undergraduate Honors Theses. 325.
https://scholarsarchive.byu.edu/studentpub_uht/325