TY  - RPRT
        AU  - Herbst, Chris M.
        TI  - The Introduction of Universal Child Care in New Mexico: Initial Evidence on Mothers' Labor Supply
        PY  - 2026/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 18968
        UR  - https://www.iza.org/publications/dp18968
        AB  - 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.
        KW  - child care
KW  - labor supply
KW  - maternal employment
        ER  -