Public regulations and provision of goods associated with human capital
likely does more to level this playing field in Canada than in the United States.
In Corak, Curtis, and Phipps (2011), we show that mental and physical health,
school readiness, and some education outcomes are on average higher in Canada,
and less tied to family circumstance. It is not a simple task to attribute these
outcomes to the public provision of goods in a causal sense. However, we suggest
that universal provision of health care is associated with more preventative care
for children that reduces the number and severity of health shocks that could
have longer-term consequences. In addition, parents have more flexibility in
making childcare and work arrangements in Canada. For the study period
we consider, the late 1990s, there seemed to be more part-time employment in
Canada, and a significant policy change in the mid 1990s extended paid parental
leave for up to almost one year after a child’s birth and gave parents the right
to return to their job. Income support to families was also reformed around
the same time, delivered through the income tax system and more targeted and
generous for lower income families. The program is substantially more generous
than its American counterpart and is more likely to reach all families with
children because tax-filing rates are nearly universal. In fact, more recently
some provincial governments have introduced full-time kindergarten for four
year-olds.