Targeted or Universal Coverage? Assessing Heterogeneity in the Effects of Universal Childcare

Working Paper: NBER ID: w22126

Authors: Michael J. Kottelenberg; Steven F. Lehrer

Abstract: We extend earlier research evaluating the Quebec Family Policy by providing the first evidence on the distributional effects of universal child care on two specific developmental outcomes. Our analysis uncovers substantial policy relevant heterogeneity in the estimated effect of access to subsidized child care across two developmental score distributions for children from two-parent families. Whereas past research reported findings of negative effects on mothers and children from these families, igniting controversy, our estimates reveal a more nuanced image that formal child care can indeed boost developmental outcomes for children from some households: particularly disadvantaged single-parent households. In addition, we document significant heterogeneity that differs by child gender. We present suggestive evidence that the heterogeneity in policy effects that emerges across child gender and family type is consistent with differences in the home learning environments generated by parents behaviors that are previously present and are shaped by responses to the policy.

Keywords: Universal Childcare; Developmental Outcomes; Quebec Family Policy

JEL Codes: C23; I28; J13


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
Quebec Family Policy (J13)developmental test scores for children from single-parent households (J12)
Quebec Family Policy (J13)developmental test scores for children from two-parent families (J12)
observed heterogeneity in treatment effects (C21)changes in parenting practices and home learning environment (I24)

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