Impact of Quebec's universal low-fee childcare program on female labour force participation, domestic income and government budgets

Impact of Quebec's universal low-fee childcare program on female labour force participation, domestic income and government budgets

"The net expense of $ 1.6 billion in Quebec resulted in a positive tax return of 2.4 billion for the two governments, $ 1.7 billion to 0.7 billion to Quebec and Ottawa. In other words, every $ 100 investment from the Government of Quebec [for the child care program] gave a $ 104 tax return and also contributed to a $ 43 gift to the federal government. "

They add an interesting dimension on the increase of women's employment rate: "The net expense of $ 1.6 billion of this increase in the employment rate of women due to child care program has resulted in an increase equivalent to 1.7% of total employment in Quebec. Economists know that the increase in employment leads to an expansion of gross domestic product (GDP) in the same proportion, that is 1.7%, or $ 5.1 billion for 2008. (...) These new female workers and the economic growth they have generated, has enabled the Government of Quebec to collect 349 million more in taxes on personal income, 585 million more in indirect taxes such as PST or property taxes, 318 million more in payroll taxes, such as parental insurance or the Québec pension plan contributions. The improvement of living standards of women and their families has also allowed savings that year, savings equivalent to 116 million in welfare payments and 150 million which would otherwise have been paid in tax credits for childcare."

ORGANIZATION: Chaire de recherche en fiscalité et en finances publiques
PUBLICATION DATE: 2012
LOCATION: Québec, Canada