Overview

Abstract (English)

Using the Canadian Labour Force Survey (CLFS), this paper estimates the impact of eligibility to the Universal Child Care Benefit (UCCB) on women’s labour supply. Comparing the labour supply of mothers with and without young children, before and after the introduction of the UCCB demo grant in 2006, our results show that UCCB eligibility significantly reduces women’s hours worked (by 2 hours per week) and participation in the labour force (by 7 percentage points). Whether the estimated effect represents the demogrant’s direct income effect or an indirect effect through fertility choices is explored. We also use of the longitudinal aspect of the Labour Force Survey to explore the labour supply response of mothers to the elimination of the UCCB when a child reaches age 6.

Abstract (French)

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