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.