Impact of after-school care on maternal income: Evidence from Canadian administrative data

Abstract

This paper estimates the average causal effect of access to subsidized before- and after-school care on the labour market outcomes of mothers. Specifically, we analyze a major policy reform implemented in Quebec (Canada) in 1998, which required all public primary schools to provide before- and after-school care at a low fixed fee, thereby reducing costs and expanding availability for families. We identify the intent-to-treat effect of the reform on service use and maternal labour market outcomes using administrative tax return data and a triple difference design. We find that, 7 years after implementation, the policy led to a substantial increase in mothers' use of childcare programs and raised their average annual labour income by 7%. These income gains are primarily driven by higher income among working mothers, rather than increased employment rates.