| This dissertation consists of three independent papers that examine individuals' or household's decisions related to human capital. In my first paper, I examine the effect of child care subsidies on low income single mothers' decisions. In line with the spirit of the welfare reform in 1996 that emphasized self sufficiency through work, child care subsidies are consolidated, and their impacts are examined. Estimates using instrumental variables and from the multinomial discrete choice model show that the child care subsidy program increases the low income mothers' labor supply. In addition, the subsidy encourages mothers to utilize formal care, which might have not been affordable without subsidies.; My second paper investigates the effects of an educational subsidy program in Mexico, PROGRESA, on investment in children's human capital. I develop a dynamic behavioral model to consider possible sources of under-investment and the effects of the subsidy. Through a numerical and empirical analysis, I assess the validity of the model and evaluate the effects of the subsidy. I find that the subsidy increase human capital accumulation by relaxing credit constraints that these low income families face and by directing resources to schooling.; The third paper focuses on explaining changes in women's education, work, and marriage behavior over past thirty years. Noting that there is a great increase in inequality of men's earnings, I focus on examining its effects on women's decisions. The main features of my model include an assortive marriage market by education, endogenous human capital investment, and spouse search process. An increase in inequality of men's earnings within and between educational group significantly delay marriage, and longer periods before marriage lead to higher human capital accumulation. |
