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Universal Child Care: Long-Term Maternal Work Impact

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New estimates reveal the long-term effects of Quebec's universal, subsidized child care on maternal labor outcomes. The program shows an enduring positive impact on employment, even after children age out of preschool years.

Earnings impact grows to be twice as large as the participation effect, driven by increased work intensity and rising hourly wages. This suggests initial work investments have multiplier effects later in women's careers.

Evidence shows occupational upgrading, though most growth occurs within occupations due to added labor market experience. As a result, tax remittances grow over the lifecycle, while social assistance and employment insurance receipts fall.

The fiscal balance shows the net present value of benefits may recapture between 75 and 117 percent of upfront program costs.