Advanced Search
MyIDEAS: Login

The Québec’s Experiment of $5 per Day per Child Childcare Policy and Mother’s Labour Supply: Evidence Based on the Five Cycles of the NLSCY

Contents:

Author Info

  • Pierre Lefebvre
  • Philip Merrigan

Abstract

On September 1st, 1997, a new childcare policy was initiated by the provincial government of Quebec, the second most populous province in Canada. Childcare services licensed by the Ministry of the Family (not-for-profit centres, family-based childcare, and for-profit centres under the agreement) began offering day care spaces at the reduced parental contribution of $5 per day per child for children aged 4 years. In successive years, the government reduced the age requirement and engaged in a plan to create new childcare facilities and pay for the cost of additional $5 per day childcare spaces. By September 2000, the low-fee policy applied to all children aged 0 to 59 months (not in kindergarten) and the number of partly subsidized spaces increased from 77,000 in 1998 to 163,000 spaces, totally subsidized by the end of year 2002, while the number of eligible children, zero to four years old, declined from 428,000 to 369,000 over the same period. Using data drawn from Statistics Canada’s National Longitudinal Survey of Children and Youth (NLSCY), this study attempts to estimate the effect of the policy on the labour supply behavior of Quebec mothers with pre-school children, aged from 0 to 5 years old. The analysis examines the impact of the policy on the following outcomes: labour force participation and annual number of weeks at work. A non-experimental evaluation framework based on multiple pre- and post-treatment periods is used to estimate the effect of the childcare regime. The econometric results support the hypothesis that the childcare policy, together with the transformation of public kindergarten from a part-time to a full-time basis, had a large and statistically significant impact on the labour supply of Quebec’s mothers with pre-school children. The estimates also suggest, though less convincingly, that the size of the impact increased concurrently with the positive growth in the number of low-fee spaces. Le 1er septembre 1997, le gouvernement du Québec instaurait une nouvelle politique de subvention aux services de garde. Les milieux de garde reconnus par le ministère de la Famille et de l’Enfance ont commencé à offrir des places à contribution réduite (5 $/jour) pour les enfants qui avaient atteint l'âge de 4 ans au 30 septembre. En outre, le gouvernement s’engageait à réduire progressivement (chaque année) l’âge d’admissibilité de ces places et à augmenter leur nombre dans le réseau des services de garde subventionnés. En septembre 2000, la politique s’est appliquée à tous les enfants âgés de 0 à 59 mois (non en maternelle) et le nombre de places partiellement subventionnées est passé de 77 000 en 1998 à 163 000 à la fin de 2002, alors que le nombre d’enfants âgés de 0 à 4 ans a baissé de 428 000 à 369 000 sur la même période. Cette étude, qui s’appuie sur les données de l’Enquête nationale longitudinale sur les enfants et les jeunes, conduite par Statistique Canada, estime les effets de la politique sur l’offre de travail des mères québécoises qui ont au moins un enfant âgé entre 0 et 5 ans. Deux indicateurs du comportement de travail sont analysés, soit la participation au marché du travail et le nombre annuel de semaines travaillées. L’analyse adopte une approche « quasi expérimentale », c’est-à-dire que les différences entre les mères québécoises (groupe traitement) et les mères des autres provinces (groupe de contrôle) sont comparées avant et après la mise en place du régime de subventions aux services de garde. Nos résultats sont conformes à l’hypothèse que le programme de soutien aux services de garde mis en place par le gouvernement du Québec, simultanément avec la maternelle cinq ans gratuite et à temps plein, ont eu un impact important et statistiquement significatif sur l’offre de travail des mères avec des enfants de 5 ans ou moins. Les résultats économétriques soutiennent aussi, quoique de façon moins convaincante, que l’ampleur de l’effet a augmenté simultanément avec l’augmentation du nombre de places à contribution réduite de 1998 à 2002.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.cirano.qc.ca/pdf/publication/2005RP-21.pdf
Download Restriction: no

Bibliographic Info

Paper provided by CIRANO in its series CIRANO Project Reports with number 2005rp-21.

as in new window
Length:
Date of creation: 01 Oct 2005
Date of revision:
Handle: RePEc:cir:cirpro:2005rp-21

Contact details of provider:
Postal: 2020 rue University, 25e étage, Montréal, Quéc, H3A 2A5
Phone: (514) 985-4000
Fax: (514) 985-4039
Email:
Web page: http://www.cirano.qc.ca/
More information through EDIRC

Related research

Keywords: mother’s labour supply; preschool children; childcare subsidy; quasi-natural experiment; offre de travail des mères; enfants d’âge préscolaire; politique de garde; expérience quasi naturelle;

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Pierre Lefebvre & Philip Merrigan, 2005. "Low-fee ($5/day/child) Regulated Childcare Policy and the Labor Supply of Mothers with Young Children: a Natural Experiment from Canada," Cahiers de recherche 0508, CIRPEE.
  2. Gordon Cleveland & Morley Gunderson & Douglas Hyatt, 1996. "Child Care Costs and the Employment Decision of Women: Canadian Evidence," Canadian Journal of Economics, Canadian Economics Association, vol. 29(1), pages 132-51, February.
  3. James J. Heckman, 1974. "Effects of Child-Care Programs on Women's Work Effort," NBER Chapters, in: Marriage, Family, Human Capital, and Fertility, pages 136-169 National Bureau of Economic Research, Inc.
  4. Francesconi, Marco & van der Klaauw, Wilbert, 2004. "The Consequences of ‘In-Work’ Benefit Reform in Britain: New Evidence from Panel Data," IZA Discussion Papers 1248, Institute for the Study of Labor (IZA).
  5. Ribar, D.C., 1991. "A Structural Model of Child Care and the Labor Supply of Married Women," Papers 1-91-1, Pennsylvania State - Department of Economics.
  6. James J. Heckrnan, 1974. "Effects of Child-Care Programs on Women's Work Effort," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 491-524 National Bureau of Economic Research, Inc.
  7. David M. Blau, 2000. "Child Care Subsidy Programs," NBER Working Papers 7806, National Bureau of Economic Research, Inc.
  8. Bruce D. Meyer & Dan T. Rosenbaum, 1999. "Welfare, the Earned Income Tax Credit, and the Labor Supply of Single Mothers," NBER Working Papers 7363, National Bureau of Economic Research, Inc.
  9. Angrist, Joshua D. & Krueger, Alan B., 1999. "Empirical strategies in labor economics," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 23, pages 1277-1366 Elsevier.
  10. Jonah B. Gelbach, 2002. "Public Schooling for Young Children and Maternal Labor Supply," American Economic Review, American Economic Association, vol. 92(1), pages 307-322, March.
  11. Philip K. Robins & Charles Michalopoulos, 2002. "Employment and child-care choices of single-parent families in Canada and the United States," Journal of Population Economics, Springer, vol. 15(3), pages 465-493.
  12. Jane Waldfogel, 2002. "Child care, women's employment, and child outcomes," Journal of Population Economics, Springer, vol. 15(3), pages 527-548.
  13. Pål Schøne, 2004. "Labour supply effects of a cash-for-care subsidy," Journal of Population Economics, Springer, vol. 17(4), pages 703-727, December.
  14. Charles Michalopoulos & Philip K. Robins, 2000. "Employment and child-care choices in Canada and the United States," Canadian Journal of Economics, Canadian Economics Association, vol. 33(2), pages 435-470, May.
  15. Meyer, Bruce D, 1995. "Natural and Quasi-experiments in Economics," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(2), pages 151-61, April.
  16. David Blau & Janet Currie, 2004. "Preschool, Day Care, and Afterschool Care: Who's Minding the Kids?," NBER Working Papers 10670, National Bureau of Economic Research, Inc.
  17. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2002. "How Much Should We Trust Differences-in-Differences Estimates?," NBER Working Papers 8841, National Bureau of Economic Research, Inc.
  18. Jane Waldfogel & Wen-Jui Han & Jeanne Brooks-Gunn, 2002. "The effects of early maternal employment on child cognitive development," Demography, Springer, vol. 39(2), pages 369-392, May.
  19. Lisa M. Powell, 1997. "The Impact of Child Care Cost on the Labour Supply of Married Mothers: Evidence from Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 30(3), pages 577-94, August.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Pierre Lefebvre & Philip Merrigan & Matthieu Verstraete, 2008. "Childcare Policy and Cognitive Outcomes of Children: Results from a Large Scale Quasi-Experiment on Universal Childcare in Canada," Cahiers de recherche 0823, CIRPEE.
  2. Pierre Lefebvre & Philip Merrigan, 2005. "Low-fee ($5/day/child) Regulated Childcare Policy and the Labor Supply of Mothers with Young Children: A Natural Experiment from Canada / La politique des services de garde à 5 $/jour et l’offre de," CIRANO Working Papers 2005s-08, CIRANO.
  3. repec:hal:wpaper:halshs-00699671 is not listed on IDEAS
  4. Abel Brodeur & Marie Connolly, 2012. "Do Higher Childcare Subsidies Improve Parental Well-being? Evidence from Québec's Family Policies," PSE Working Papers halshs-00699671, HAL.
  5. Pierre Lefebvre & Philip Merrigan & Matthieu Verstraete, 2006. "Impact of Early Childhood Care and Education on Children's Preschool Cognitive Development: Canadian Results from a Large Quasi-experiment," Cahiers de recherche 0636, CIRPEE.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:cir:cirpro:2005rp-21. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Webmaster).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.