This literature review summarizes recent research on topics related to child care subsidies with the intent to provide a foundation of empirical knowledge for state administrators, program developers, and policymakers as they choose among and implement subsidy policies. The three sections of the report include: descriptive information about subsidy use; a review of the literature addressing the association between subsidy receipt and intermediate outcomes (parents’ choice of high quality care and continuity of care with subsidized arrangements); and a discussion of the association between subsidy receipt and certain family (including employment) and child outcomes. The report concludes with key questions to consider in developing or modifying policies, practices, and data systems; promising directions for future subsidy research; and insights from state administrators.
