
In this era of political correctness andย white lies, politicos often get away with feel-good initiatives that have proved at best ineffective elsewhere. The Fraser Institute has just released an important study on subsidized daycare in Quebec. In force since 1997, the policy has been unnecessary and expensive, and yet its political appeal remains.
In 2017, the Quebec provincial government spent overย $9,000 per child in the programโalmost $2.3 billion in total. Meanwhile tens of thousands of children, particularly those from low- and moderate-income households, remain on waiting lists.
Vincent Geloso, author of “Subsidized DaycareโWhat British Columbia Can Learn from Quebecโs 20-Year Experiment,” explains that the program has failed even in its two alleged strengths. Advocates argue, for example, that subsidized daycare allows mothers to join the labor force sooner, and that their tax contributions offset most of the program’s costs. Pesky data shows that the employment rate has increased more among women above childbearing ageย than among those supposed to be encouraged to work by the program.
For this reason,ย plus limited fees from users, the program does not pay for itself. Even in the case of upper-income families, who could easily pay higher fees, childcare services โare still heavily subsidized.โ
Advocates also argue that daycare programs are important becauseย they โgenerally improve cognitive and non-cognitive developmental outcomes for children.โ However, studies do not show improvements in cognitive skills, but rather hindrances on non-cognitive ones.
Despite the less than flattering results of the subsidized daycare program, other provinces are seeking to adopt similar policies. During the last provincial election in British Columbia, the winning Liberal Party campaigned onย โuniversalโ access to a CAN$10-per-day childcare program. Although its 2018 budget does not include subsidized daycare, the provincial government is already taking the initial actions to adopt a policy that has largely failed before.
Vincent Geloso recommends that British Columbiaโs ruling party learn from Quebec’s 20 yearsย of experience: โThese realities should be borne in mind whenever any Canadian province is considering following Quebecโs lead on daycare.โ
British Columbia can still avoid a policy that could result in significant fiscal costs, the reduced well-being of moderate-income families, and mediocre development of children. Quebecโs subsidized daycare program is a primeย example of policies that sound good for political campaigns but are detrimental when implemented.ย
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