Universal Child Care in Quebec : Effects on Female Income
I assess the case for universal child care subsidization in the Canadian context by examining the 1997 Quebec Universal Child Care Policy. Using a non-linear difference in differences methodology, I estimate the quantile treatment effects of the reform on female after-tax earnings. I find that the effects of the child care subsidy were more varied than previous difference-in-difference studies suggest. I complement this analysis by quantifying the redistributive effects of the policy and compute the pre and post policy gini coefficients.These findings have important implications for the policy debate especially if other Canadian provinces are considering a similar program.