IDEAS home Printed from https://ideas.repec.org/p/cir/cirwor/2005s-08.html
   My bibliography  Save this paper

La politique des services de garde à 5 $/jour et l'offre de travail des mères québécoises : résultats d'une expérience naturelle canadienne

Author

Listed:
  • 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 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 annual data (1993 to 2002), drawn from Statistics Canada's Suvey of Labour and Income Dynamics (SLID), this study attempts to estimate the effect of the policy on the labor 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: labor force participation, annual number of weeks and hours at work, annual earned income and whether the job was full-time for mothers who declared having a job during the reference year. A non-experimental evaluation framework based on multiple pre- and post- treatment periods is used to estimate the effect of the childcare regime. The econometrics 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 labor supply of Quebec's mothers with pre-school children. The estimates also suggest, though less convincingly, that the size of the impact i
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Pierre Lefebvre & Philip Merrigan, 2005. "La politique des services de garde à 5 $/jour et l'offre de travail des mères québécoises : résultats d'une expérience naturelle canadienne," CIRANO Working Papers 2005s-08, CIRANO.
  • Handle: RePEc:cir:cirwor:2005s-08
    as

    Download full text from publisher

    File URL: https://cirano.qc.ca/files/publications/2005s-08.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. David M. Blau, 1999. "The Effect Of Income On Child Development," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 261-276, May.
    2. Philippe Choné & David Le Blanc & Isabelle Robert-Bobée, 2004. "Offre de travail féminine et garde des jeunes enfants," Economie & Prévision, La Documentation Française, vol. 162(1), pages 23-50.
    3. Francesconi, Marco & van der Klaauw, Wilbert, 2004. "The consequences of ‘in-work’ benefit reform in Britain: new evidence from panel data," ISER Working Paper Series 2004-13, Institute for Social and Economic Research.
    4. Bruce D. Meyer & Dan T. Rosenbaum, 2001. "Welfare, the Earned Income Tax Credit, and the Labor Supply of Single Mothers," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(3), pages 1063-1114.
    5. John F. Ermisch & Marco Francesconi, 2001. "Family structure and children's achievements," Journal of Population Economics, Springer;European Society for Population Economics, vol. 14(2), pages 249-270.
    6. David Card, 1990. "The Impact of the Mariel Boatlift on the Miami Labor Market," ILR Review, Cornell University, ILR School, vol. 43(2), pages 245-257, January.
    7. Ribar, David C, 1995. "A Structural Model of Child Care and the Labor Supply of Married Women," Journal of Labor Economics, University of Chicago Press, vol. 13(3), pages 558-597, July.
    8. 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.
    9. 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.
    10. David Blau, 2003. "Child Care Subsidy Programs," NBER Chapters, in: Means-Tested Transfer Programs in the United States, pages 443-516, National Bureau of Economic Research, Inc.
    11. Gruber, Jonathan, 1994. "The Incidence of Mandated Maternity Benefits," American Economic Review, American Economic Association, vol. 84(3), pages 622-641, June.
    12. 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;European Society for Population Economics, vol. 15(3), pages 465-493.
    13. repec:rus:hseeco:9882 is not listed on IDEAS
    14. 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.
    15. Lisa M. Powell, 2002. "Joint Labor Supply and Childcare Choice Decisions of Married Mothers," Journal of Human Resources, University of Wisconsin Press, vol. 37(1), pages 106-128.
    16. Martin Dooley & Jennifer Stewart, 2004. "Family income and child outcomes in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 37(4), pages 898-917, November.
    17. Carneiro, Pedro & Heckman, James J., 2003. "Human Capital Policy," IZA Discussion Papers 821, Institute of Labor Economics (IZA).
    18. Charles Michalopoulos & Philip K. Robins, 2000. "Employment and child‐care choices in Canada and the United States," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 33(2), pages 435-470, May.
    19. Jane Waldfogel & Wen-Jui Han & Jeanne Brooks-Gunn, 2002. "The effects of early maternal employment on child cognitive development," Demography, Springer;Population Association of America (PAA), vol. 39(2), pages 369-392, May.
    20. Kevin Milligan & Mark Stabile, 2004. "The Integration of Child Tax Credits and Welfare: Evidence from the National Child Benefit Program," NBER Working Papers 10968, National Bureau of Economic Research, Inc.
    21. Robert Haveman & Barbara Wolfe, 1995. "The Determinants of Children's Attainments: A Review of Methods and Findings," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1829-1878, December.
    22. 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 577-594, August.
    23. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    24. Jane Waldfogel, 2002. "Child care, women's employment, and child outcomes," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(3), pages 527-548.
    25. Meyer, Bruce D, 1995. "Natural and Quasi-experiments in Economics," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(2), pages 151-161, April.
    26. Blau, David & Currie, Janet, 2006. "Pre-School, Day Care, and After-School Care: Who's Minding the Kids?," Handbook of the Economics of Education, in: Erik Hanushek & F. Welch (ed.), Handbook of the Economics of Education, edition 1, volume 2, chapter 20, pages 1163-1278, Elsevier.
    27. Pål Schøne, 2004. "Labour supply effects of a cash-for-care subsidy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(4), pages 703-727, December.
    28. 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.
    29. Janet Currie, 2000. "Early Childhood Intervention Programs: What Do We Know?," JCPR Working Papers 169, Northwestern University/University of Chicago Joint Center for Poverty Research.
    30. 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 132-151, February.
    31. Pierre Lefebvre & Philip Merrigan, 2005. "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," CIRANO Project Reports 2005rp-21, CIRANO.
    32. Robert A. Moffitt, 2003. "Means-Tested Transfer Programs in the United States," NBER Books, National Bureau of Economic Research, Inc, number moff03-1, March.
    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


    Cited by:

    1. Maria Donovan Fitzpatrick, 2010. "Preschoolers Enrolled and Mothers at Work? The Effects of Universal Prekindergarten," Journal of Labor Economics, University of Chicago Press, vol. 28(1), pages 51-85, January.
    2. Pierre Lefebvre & Philip Merrigan, 2005. "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," CIRANO Project Reports 2005rp-21, CIRANO.
    3. Michael Baker & Jonathan Gruber & Kevin Milligan, 2008. "Universal Child Care, Maternal Labor Supply, and Family Well-Being," Journal of Political Economy, University of Chicago Press, vol. 116(4), pages 709-745, August.
    4. Hou, Feng & Picot, Garnett & Myers, Karen & Myles, John, 2006. "Why Did Employment and Earnings Rise Among Lone Mothers During the 1980s and 1990s?," Analytical Studies Branch Research Paper Series 2006282e, Statistics Canada, Analytical Studies Branch.
    5. Elizabeth U. Cascio, 2009. "Maternal Labor Supply and the Introduction of Kindergartens into American Public Schools," Journal of Human Resources, University of Wisconsin Press, vol. 44(1).
    6. 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.
    7. Elias Ilin & Samantha Shampine & Ellyn Terry, 2022. "Does Access to Free Pre-Kindergarten Increase Maternal Labor Supply?," FRB Atlanta Working Paper 2022-3, Federal Reserve Bank of Atlanta.
    8. Hou, Feng & Picot, Garnett & Myers, Karen & Myles, John, 2008. "The Demographic Foundations of Rising Employment and Earnings Among Single Mothers in Canada and the United States, 1980 to 2000," Analytical Studies Branch Research Paper Series 2008305e, Statistics Canada, Analytical Studies Branch.
    9. Elias Ilin & Samantha Shampine & Ellyn Terry, 2021. "Does Access to Free Pre-Kindergarten Increase Maternal Labor Supply?," Research Working Paper RWP 21-11, Federal Reserve Bank of Kansas City.
    10. Filgueira, Fernando & Rossel, Cecilia, 2017. "Confronting inequality: Social protection for families and early childhood through monetary transfers and care worldwide," Políticas Sociales 43158, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    11. Paul Makdissi & Dorothée Boccanfuso & Mathieu Audet, 2006. "L’impact de la proposition conservatrice de réforme du financement des services de garde sur la pauvreté et l’inégalité au Québec," Cahiers de recherche 06-10, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    12. John Myles & Feng Hou & Garnett Picot & Karen Myers, 2009. "The Demographic Foundations of Rising Employment and Earnings among Single Mothers in Canada and the United States, 1980–2000," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 28(5), pages 693-720, October.
    13. Ms. Evridiki Tsounta, 2006. "Why Are Women Working So Much More in Canada? An International Perspective," IMF Working Papers 2006/092, International Monetary Fund.
    14. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pierre Lefebvre & Philip Merrigan, 2005. "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," CIRANO Project Reports 2005rp-21, CIRANO.
    2. Pierre Lefebvre & Philip Merrigan, 2008. "Child-Care Policy and the Labor Supply of Mothers with Young Children: A Natural Experiment from Canada," Journal of Labor Economics, University of Chicago Press, vol. 26(3), pages 519-548, July.
    3. Michael Baker & Jonathan Gruber & Kevin Milligan, 2008. "Universal Child Care, Maternal Labor Supply, and Family Well-Being," Journal of Political Economy, University of Chicago Press, vol. 116(4), pages 709-745, August.
    4. Müller, Kai-Uwe & Wrohlich, Katharina, 2020. "Does subsidized care for toddlers increase maternal labor supply? Evidence from a large-scale expansion of early childcare," Labour Economics, Elsevier, vol. 62(C).
    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.
    6. David Blau, 2003. "Child Care Subsidy Programs," NBER Chapters, in: Means-Tested Transfer Programs in the United States, pages 443-516, National Bureau of Economic Research, Inc.
    7. Blau, David & Currie, Janet, 2006. "Pre-School, Day Care, and After-School Care: Who's Minding the Kids?," Handbook of the Economics of Education, in: Erik Hanushek & F. Welch (ed.), Handbook of the Economics of Education, edition 1, volume 2, chapter 20, pages 1163-1278, Elsevier.
    8. Y.E. Akgündüz & J. Plantenga, 2015. "Childcare Prices and Maternal Employment: a Meta-Analysis," Working Papers 15-14, Utrecht School of Economics.
    9. 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.
    10. Nollenberger, Natalia & Rodríguez-Planas, Núria, 2011. "Child Care, Maternal Employment and Persistence: A Natural Experiment from Spain," IZA Discussion Papers 5888, Institute of Labor Economics (IZA).
    11. Colm Harmon & Claire Finn & Arnaud Chevalier & Tarja Viitanen, 2006. "The economics of early childhood care and education : technical research paper for the National Economic and Social Forum," Open Access publications 10197/671, School of Economics, University College Dublin.
    12. Yusuf Emre Akgunduz & Janneke Plantenga, 2018. "Child Care Prices And Maternal Employment: A Meta†Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 32(1), pages 118-133, February.
    13. Tekin, Erdal, 2005. "Child care subsidy receipt, employment, and child care choices of single mothers," Economics Letters, Elsevier, vol. 89(1), pages 1-6, October.
    14. Helmut Mahringer & Christine Zulehner, 2015. "Child-care costs and mothers’ employment rates: an empirical analysis for Austria," Review of Economics of the Household, Springer, vol. 13(4), pages 837-870, December.
    15. Christina Gathmann & Björn Sass, 2018. "Taxing Childcare: Effects on Childcare Choices, Family Labor Supply, and Children," Journal of Labor Economics, University of Chicago Press, vol. 36(3), pages 665-709.
    16. Müller, Kai-Uwe & Wrohlich, Katharina & Sengül, Denise, 2016. "Does subsidized care for toddlers increase maternal labor supply? Evidence from a large-scale expansion of early childcare," VfS Annual Conference 2016 (Augsburg): Demographic Change 145654, Verein für Socialpolitik / German Economic Association.
    17. Philippe Choné & David le Blanc & Isabelle Robert-Bobée, 2003. "Female Labor Supply and Child Care in France," CESifo Working Paper Series 1059, CESifo.
    18. Guyonne Kalb, 2009. "Children, Labour Supply and Child Care: Challenges for Empirical Analysis," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 42(3), pages 276-299, September.
    19. 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 of Labor Economics (IZA).
    20. Daniela Del Boca, 2015. "Child Care Arrangements and Labor Supply," IDB Publications (Working Papers) 88074, Inter-American Development Bank.

    More about this item

    Keywords

    labor supply of mothers; childcare policy; panel data; offre de travail des mères; politique des services de garde; données de panel;
    All these keywords.

    JEL classification:

    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cir:cirwor:2005s-08. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Webmaster (email available below). General contact details of provider: https://edirc.repec.org/data/ciranca.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.