@TechReport{iza:izadps:dp18968,
            	author={Herbst, Chris M.},
            	title={The Introduction of Universal Child Care in New Mexico: Initial Evidence on Mothers' Labor Supply},
            	year={2026},
	month={Oct},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={18968},
            	url={https://www.iza.org/publications/dp18968},
	abstract={In November 2025, New Mexico became the first U.S. state to implement a universal, no-cost child care subsidy program. This paper estimates difference-in-differences and event-study models to evaluate the impact of universal child care on mothers' short-run labor supply adjustments. Using monthly Current Population Survey data, I find that the reform produced different responses across lower- and higher-skilled mothers. For lower-skilled mothers, the policy increased employment along both the extensive and intensive margins. Conversely, higher-skilled mothers, particularly those who are married, experienced reductions in paid work, with partially offsetting increases in school enrollment. Thus, while universal child care relaxes a binding constraint among disadvantaged families, it acts as an in-kind transfer for their advantaged counterparts.},
	keywords={child care;labor supply;maternal employment},
            }