Taking Classes and Taking Care of the Kids: Do Childcare Benefits Increase Collegiate Attainment?

College participation among “non-traditional” students including women with children has increased markedly in the last three decades. This increase is likely to reflect both changes in labor market opportunities and federal financial aid relieving credit constraints and reducing the direct cost of college. For women with children, the need to finance childcare may impede investment in skills that would lead to long-run increases in economic well-being. In academic year 1988-89, up to $1000 in childcare costs were allowed in calculations determining Pell grant amounts. We use data from the National Longitudinal Survey of Youth to examine how introducing the childcare allowance into the Pell grant formula affected maternal enrollment and attainment. We find that this program change had a positive impact on enrollment of women with children.