In 2012, the Quebec government introduced the Tax Credit for Career Extension (Crédit d'impôt pour prolongation de carrière CIPC), a tax measure to encourage workers 65 or over (60 and over as of 2019) to continue working or rejoin the workforce. The credit reduces the income tax payable on a portion of their eligible work income. This measure has been improved every year since 2015 so that the cost of the measure has increased from a modest $46 million in 2012 to over $342 million in 2019.

Using panel microdata from the Longitudinal and International Adult Study (LIA) from 2012 to 2020, the authors propose a series of methodological approaches to assess the impact of the credit on labor supply behavior. Estimates based on the most statistically efficient method suggest that the credit has had a significant impact on employment earnings, particularly for women. However, the effects do not appear until the fourth or fifth year after credit implementation, i.e. the years of high credit subsidies. The authors point out that, beyond its proven effectiveness, the question of the credit's efficiency - i.e. the actual impact of possible increased participation in the labour market on taxable income, and consequently on government tax revenues - remains to be demonstrated.