Search

Using the Youth in Transition Survey we estimate a Roy model with a three dimensional latent factor structure to consider how parental valuation of education, cognitive skills and non-cognitive skills in uence endogenous schooling decisions and subsequent labour market outcomes in Canada. We find the effect of cognitive skills on adult incomes arises by increasing the likelihood of obtaining further education. Further, we find that both non-cognitive skills and parental valuation for education play a larger role in determining income at age 25 than cognitive skills. Last, our analysis uncovers striking differences between men and women in several of the estimated relationships. Specifically, simulations of the estimated model illustrate that i) among the low skilled, women have much higher college graduation rates, ii) the age 25 earnings gradient by either skill measure is much atter for women, and iii) parental valuation of education plays a larger role in in uencing young women than men.

The rising participation of women in paid work has not only heightened demand for universal early education and care programs but also led to increased use of child care amongst children at earlier ages. Prior research investigating Quebec's universal highly-subsidized child care documented significant declines in a variety of developmental outcomes for all children aged 0-4 years. However, past analysis has not explored whether these effects vary for children of different ages. In this paper, we demonstrate substantial heterogeneity in policy impacts by child age. Children who gain access to subsidized child care at earlier ages experience significantly larger negative impacts on developmental scores, health and behavioral outcomes. The sole exception is the negative relationship between access to subsidized child care and hyperactivity scores which steepens with child age. Our analysis additionally provides significant evidence of treatment effect heterogeneity within ages, and reveals benefits from access to universal child care on developmental scores for those that are above three years of age.