Prior to an Expanded Child Care Subsidy Program in Illinois

question 1

Multiple Choice

Prior to an expanded child care subsidy program in Illinois, the labor force participation rate of single mothers in Illinois was 45% and in Wisconsin was 48%. After Illinois expanded its child care subsidy program, the participation rate increased to 58% in Illinois and to 51% in Wisconsin. The expanded child care program in Illinois is estimated to increase labor force participation of single mothers by how much according to a difference-in-differences estimator?

• A) 3%
• B) 6%
• C) 7%
• D) 10%
• E) 13%

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