Universal child care, maternal labor supply, and family well-being

download file
Journal of Political Economy, Volume 116, Issue 4, pp. 709-740.

Changes to the labour force have correlated with an increase in the proportion of children requiring child care services. The majority of children receiving non-parental care in Canada are from families in which both parents are employed. In Canada, subsidies for child care typically vary according to family income; however, from 1997 to 2000 the province of Québec implemented a universally subsidized child care program under the Québec Family Policy.

This paper evaluates the impact of the Québec Family Policy using a nationally representative sample from The National Longitudinal Survey of Children and Youth (NLSCY). Five waves of survey data from Québec were compared with the rest of Canada on measures related to the number of married/cohabiting mothers in the labour force, the use of paid and unpaid child care services, and outcomes for children and families. The primary exclusion criteria restricted the sample to children aged zero to four from two-parent families.

The study found substantial evidence linking the Québec Family Policy to negative outcomes for children and families. Parents reported a decline in outcomes for children on measures including those related to anxiety, illness, aggression, and motor skills. Parents self-reported a decline in health and their relationships with children and partners. Additionally, the study associated the Québec Family Policy with a significant increase in the use of child care services and participation of mothers in the labour force.

Results were subject to numerous checks to control for confounding factors including trend differences between Québec and the rest of Canada and changes in economic conditions. To clarify whether the negative outcomes reported reflect short-term problems or long-term effects, future research is recommended tracking forward the cohort of children affected by the Québec Family Policy. The impact of the policy on more heterogeneous child populations, such as those in preschool or living in lone parent households, remains unclear.

Research Areas

Province / Territory
Canadian CW research
Journal article