Affiliation: University of Toronto
Title: "The Long-run Impact of a Universal Childcare Program on Maternal Work and Income".
Abstract: We estimate the lifecycle impact of Quebec’s universal, subsidized childcare program on maternal labor supply, earnings, social program benefits and tax remittances. We find an enduring positive impact on full time employment long after children have aged out of the pre school years. This impact is matched by growing positive earnings and tax remittances effects over the lifecycle. We also document a persistent negative impact on social assistance and employment insurance benefit receipt. Our preliminary estimate of the fiscal balance of these effects reveals that the flow of fiscal benefits may recapture 95 percent of the upfront costs of the program.