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The Multigenerational Impact of Children and Childcare Policies

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  • Sencer Karademir
  • Jean-William P. Laliberté
  • Stefan Staubli

Abstract

This paper examines the multigenerational impact of children and whether the public provision of formal childcare lessens the earnings and employment impacts of children. We find that the arrival of a firstborn reduces employment and earnings of mothers and employment of grandmothers. Studying a universal childcare program in Quebec, we find formal childcare increases the employment rates of mothers, as well as that of grandmothers to a lesser extent. Examining heterogeneity of the program's impact across Census Divisions, we find a negative correlation between the positive effects on mothers' employment and the pre-policy supply of informal childcare by grandmothers.

Suggested Citation

  • Sencer Karademir & Jean-William P. Laliberté & Stefan Staubli, 2024. "The Multigenerational Impact of Children and Childcare Policies," NBER Working Papers 32204, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:32204
    Note: AG CH LS PE
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    1. Claudia Olivetti & Barbara Petrongolo, 2017. "The Economic Consequences of Family Policies: Lessons from a Century of Legislation in High-Income Countries," Journal of Economic Perspectives, American Economic Association, vol. 31(1), pages 205-230, Winter.
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    11. Michael J. Kottelenberg & Steven F. Lehrer, 2013. "New Evidence on the Impacts of Access to and Attending Universal Child-Care in Canada," Canadian Public Policy, University of Toronto Press, vol. 39(2), pages 263-286, June.
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    13. Haeck, Catherine & Lefebvre, Pierre & Merrigan, Philip, 2015. "Canadian evidence on ten years of universal preschool policies: The good and the bad," Labour Economics, Elsevier, vol. 36(C), pages 137-157.
    14. Lloyd, Neil, 2020. "Strategic self-employment and family formation," CLEF Working Paper Series 20, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    15. Nicole M. Fortin, 2019. "Increasing earnings inequality and the gender pay gap in Canada: Prospects for convergence," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 52(2), pages 407-440, May.
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    17. Pierre Lefebvre & Philip Merrigan, 2008. "Child-Care Policy and the Labor Supply of Mothers with Young Children: A Natural Experiment from Canada," Journal of Labor Economics, University of Chicago Press, vol. 26(3), pages 519-548, July.
    18. Nicole M. Fortin, 2019. "Increasing earnings inequality and the gender pay gap in Canada: Prospects for convergence," Canadian Journal of Economics, Canadian Economics Association, vol. 52(2), pages 407-440, May.
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    Cited by:

    1. Jonas Jessen & Lavinia Kinne & Michele Battisti, 2024. "Child Penalties in Labour Market Skills," CEPA Discussion Papers 81, Center for Economic Policy Analysis.
    2. Gørtz, Mette & Sander, Sarah & Sevilla, Almudena, 2023. "Does the Child Penalty Strike Twice, and If So Why?," IZA Discussion Papers 16557, Institute of Labor Economics (IZA).
    3. Marie Connolly & Marie Melanie Fontaine & Catherine Haeck, 2023. "Child Penalties in Canada," Working Papers 23-02, Research Group on Human Capital, University of Quebec in Montreal's School of Management.
    4. LoRiggio, Tessa & Morris, Todd, 2024. "The Gender Wealth Gap near Retirement in Canada," IZA Policy Papers 207, Institute of Labor Economics (IZA).
    5. Lee, Siha & Liu, Sitian, 2024. "Fertility incentives in Canada: A cohort analysis," CLEF Working Paper Series 75, Canadian Labour Economics Forum (CLEF), University of Waterloo.

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    More about this item

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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