Economic Costs of Caring for Children with Disabilities in Canada

This paper uses the child sample of Statistics Canada's 2001 Participation and Activity Limitations Survey to study the economic costs of caring for children with disabilities in Canada. Both explicit out-of-pocket expenditures and implicit costs in the form of foregone labour market opportunities are considered. Results indicate that, despite universal health insurance in Canada, a majority of families of children with disabilities incur significant economic costs. Additional financial support might be offered, particularly when the child's condition is severe, and costly therapy and specialized aids could be covered. Our results also support the need for respite as well as help in balancing work and caregiving for Canadian parents of children with disabilities.