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Milligan (2008) Summary - Universal Child Care, Maternal Labor Supply, and Family Well‐Being

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Economics (Arts)
ECON 426
Sonya Laszlo

Daniel S. Goh (McGill ID: 260305028) ECON 426, Article Summary 19 September 2011 SUMMARY Title: Universal Child Care, Maternal Labor Supply, and Family Well‐Being Authors: Michael Baker, Jonathan Gruber, Kevin Milligan Source: Journal of Political Economy Date: August 2008 Keywords: Universal Child Care, Labor Supply, Labor Force Participation Main hypotheses/questions: • What is the impact of public child care financing? Will it just result in the substitution of one form of care to another? • How will public child care affect labor force participation of parents and what is the eventual net cost of the policy? • What is the effect of public child care on the outcomes of children and families? Main results: • There are increases in the use of universal child care after the Quebec Family Policy. • There is a significant increase in the employment of women after implementation of the policy. • The program has resulted in worsening of outcomes in the form of higher stress within families in comparison to the rest of Canada and before the Quebec Family Policy was implemented. Literature review: • This study mainly cites previous empirical work that examined the extent to which child care subsidies influenced the labor supply decisions of families (Anderson and Levine (2000) and Blau (2003)). • In the area of child development, they also cite studies that delve into behavioral outcomes of time away from mothers and th
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