Quebec’s universal childcare policy : immigrant women’s labour supply and childcare usage

Abstract

The 1997 Quebec childcare policy is the first and only universal childcare program to be introduced in Canada. By using data from the National Longitudinal Survey of Children and Youth from Statistics Canada, this paper analyzes the effects of this policy on immigrant women’s labour supply and their childcare usage over the course of 8 different cycles: 1994-1995, 1996-1997, 1998-1999, 2000-2001, 2002-2003, 2004-20005, 2006-2007 and 2008-2009. A double difference-in-difference method is used to estimate the effects. The results show an increase in immigrant women’s labour force participation, affecting the lower educated mothers more than the higher educated ones. In the case of childcare usage, whilst the results show an overall increase in usage, the increase is largely for informal childcare. This research adds to the existing literature, as it is the first to analyze the effects of the policy on immigrants in particular; the assumption that immigrants behave in the same way as non-immigrants is not fully supported by the findings. This paper opens up a new line of inquiry regarding the impacts of the 1997 Quebec childcare policy.