Québec's Childcare Universal Low Fees Policy 10 Years After: Effects, Costs and Benefits

More than ten years ago the province of Québec implemented a universal early childhood education and care policy. This paper examines if the two objectives pursued, to increase mothers’ participation in the labour market (balance the needs of workplace and home) and to enhance child development and equality of opportunity for children, were reasonable meet. A non-experimental evaluation framework based on multiple pre- and post-treatment periods is used to estimate the policy effects. First, year after year the number of children and their weekly of hours in childcare have increased. More preschool children are in non-parental childcare at a younger age and the intensity of childcare has increased over the years. Second, the policy has significantly increased the labour force participation and annual weeks worked for mothers with at least a child aged 1 to 4 years compared to mothers in the same situation in the Rest of Canada. Third, the evidence presented show that the policy has not enhanced school readiness or child early literacy skills in general, with negative significant effects on the PPVT scores of children aged 5 and possibly negative for children of age 4. Simulations show the bounds of the public benefits in terms of additional net taxes (income taxes less refundable credits and transfers based on household’s “net” income). Unless one suppose that mothers in the upper part of the earnings distribution are those who returned early to the labour market after giving birth or a maternity leave, and who have worked more weeks, the effect on governments revenues are modest. The main beneficiary of the larger tax base of a higher labour supply of mothers with young children is the federal government which do not support the significant public funding of the program. The policy has some drawbacks in terms of social efficiency and equity. The structure of the program with its very low $7/day fee before taxes creates strong incentives for families to use long hours of daycare for children at a very young age, which may not be the best mechanism for children development. The high transfers in-kind (1.9 billion in 2009) to families using subsidized childcare raise the question of their horizontal and vertical equity. The paper concludes on three modifications to the program that could correct some of its weaknesses.Childcare policy, mother’s labour supply, preschool children and school readiness, treatment effects, natural experiment

Intergenerational Ties in Context: Grandparents Caring for Grandchildren in China

Guided by theories and empirical research on intergenerational relationships, we examine the phenomenon of grandparents caring for grandchildren in contemporary China. Using a longitudinal dataset (China Health and Nutrition Survey), the authors document a high level of structural and functional solidarity in grandparent-grandchildren relationships. Intergenerational solidarity is indicated by a high rate of coresidence between grandchildren and grandparents, a sizable number of skipped-generation households (no parent present), extensive childcare involvement by non-coresidential grandparents, and a large amount of care provided by coresidential grandparents. Multivariate analysis further suggests that grandparents’ childcare load is adaptive to familial needs, as reflected by the characteristics of the household, household members and work activities of the mothers

Early years : subject profile (SPICe briefing; 11/51)

"This subject profile provides an introduction to services for pre-school children. It updates and expands SB 06/83 published in October 2006. Early Years refers to pre-school education, child health, children‟s social work and childcare. The main policy document – the Early Years Framework covers 0-8 years whereas childcare policy covers 0 – 14 years and policy often makes a distinction between pre-birth, birth to 3, 3 to 4 and school age children. This briefing focuses on 0 to 5 years and so does not cover ante-natal, school services or childcare for school age children except where these are also provided to pre-five children" -- front cover

Childcare Policy and Cognitive Outcomes of Children: Results from a Large Scale Quasi-Experiment on Universal Childcare in Canada

Effects of a low-fee universal childcare policy, initiated in Québec, the second most populous province in Canada, on the cognitive development of preschool children are estimated with a sample of 4- and 5-year-olds (N=8,875; N=17,154). In 1997, licensed and regulated providers of childcare services began offering daycare spaces at the reduced fee of $5 per day per child for children aged 4. By 2000, the low-fee policy applied to all children aged 0 to 59 months (not in kindergarten). The study uses 6 cycles of biennial data drawn from Statistics Canada's National Longitudinal Survey of Children and Youth (1994-2004) and quasi-experimental estimation methods to provide evidence that the policy had substantial negative effects on preschool children's Peabody Picture Vocabulary Test scores. The negative effects are found to be stronger for children with mothers who have lower levels of education.Preschool children, school readiness, childcare, kindergarten, treatment effects, natural experiment

National evaluation of the neighbourhood nurseries: integrated report

Report description: The NNI was launched in 2001 to provide high quality childcare in the most disadvantaged neighbourhoods of England, to help parents into employment, reduce child poverty and boost children’s development. By 2005 45,000 new childcare places had been created in approximately 1,400 neighbourhood nurseries. This report brings together the findings of the four individual strands of the National Evaluation of Neighbourhood Nurseries Initiative as shown above and makes a number of recommendations. The report shows the rationale for the government’s strategy in targeting disadvantaged neighbourhoods and in focusing on high quality childcare to provide the link between raising parental employment and income and improving children’s life chances

Impact of Early Childhood Care and Education on Children's Preschool Cognitive Development: Canadian Results from a Large Quasi-experiment

On September 1st 1997, a new early childhood care and education policy was initiated by the provincial government of Québec, the second most populous province in Canada. Providers of childcare services licensed by the Department of the Family began offering daycare spaces at the reduced parental contribution of $5 per day per child for children aged 4. In successive years, the government reduced the age requirement and engaged in a plan to create new childcare facilities and pay for the cost of additional$5 per day childcare spaces. By September 2000, the low-fee policy applied to all children aged 0 to 59 months and the number of partly subsidized spaces increased from 77,000 in 1998 to 170,000 spaces, totally subsidized, by midyear 2003. In addition, on September 1st 1997, all public schools offered full-day rather than part-day kindergarten for 5-year-old children. No such important policy changes for preschool (including kindergarten) children were enacted in the other Canadian provinces over the years 1994 to 2003. Using biennial data drawn from Statistics Canada’s National Longitudinal Survey of Children and Youth (NLSCY), conducted since 1994-1995, this study attempts to estimate the effect of the policy on Québec’s preschool children cognitive test scores. A non-experimental evaluation framework based on multiple pre- and post-treatment periods is used to estimate the effect of the early childhood care and education regime on school readiness. The econometric results support the hypothesis that the policy had no effects on the cognitive development of 4-year-olds (the PPVT-R raw scores and the PPVT-R standardized scores). However, we provide evidence that the policy had a substantial negative impact on the scores of 5-year-olds.preschool children, school readiness, childcare, kindergarten, treatment effects, natural experiment

Attachment matters

A review of attachment research findings relevant to early years polic

National evaluation of the neighbourhood nurseries: impact report

This study assessed the impact of NNI on parental employment, use of formal childcare, and take-up of benefits and tax credits, particularly for disadvantaged groups such as lone parents, low income families and ethnic minority groups