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ECON 426 Lecture Notes - Literature Review

Economics (Arts)
Course Code
ECON 426
Sonya Laszlo

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Daniel S. Goh (McGill ID: 260305028)
ECON 426, Article Summary
19 September 2011
Title: Universal Child Care, Maternal Labor Supply, and Family WellBeing
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
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 the cognitive impact of child care, such
as by NICHD-ECCRN (2003, 2004) and supported by other publications.
Frontier: Policy-making in the area of labor force participation, labor supply of mothers
intertwined with child and family development.
Data: This article utilizes data from the National Longitudinal Survey of Children and
Youth (NLSCY), followed longitudinally throughout five waves of which the survey was
conducted. Data for children aged 0-4 were primarily used, but data for children aged 8-
11 were utilized to check for robustness, with attention to married (or cohabiting) women
and their children.
More detailed hypotheses/facts/results/comments:
These reports could possibly be artifacts, reporting issues that were already
present but not previously reported.
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