Títol: Assessing the effect of a new parental leave plan on fertility using an extension of the difference in
differences method. The case of the Quebec Parental Insurance Plan

Abstract

In 2006, the Quebec government implemented a parental leave programme – the Quebec Parental Insurance Plan (QPIP) – more generous than the benefits that were part of the federal Employment Insurance programme. The QPIP was aimed at the reconciliation of family and work. It was expected to help mothers remain in the labour force and to help couples have the children they wanted to have. The paper aims at testing whether the implementation of the QPIP is associated with an increase in the fertilit in Quebec and estimating fertility by educational levels in Quebec and in neighbouring Ontario before and after the implementation of the QPIP. We use data from the rotating panels of the Canadian Labour Force Survey. We test the effect of the implementation of the QPIP on fertility by comparing Quebec and Ontario before and after its implementation. We adapt the difference in differences method to the modelling of the fertility schedule using Poisson regression. We estimate fertility by educational levels within each of the four groups of the DiD design by integrating the estimated fertility schedules. We
find that the implementation of the QPIP is associated with an increase in fertility in Quebec and that the magnitude of the increase varies by educational levels.

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