The effect of an alternative childcare subsidy on labour supply: a policy simulation

Guyonne Kalb and Wang-Sheng Lee

Australian Journal of Labour Economics (AJLE), 2007, vol. 10, issue 1, 39-57

Abstract: Based on labour supply parameter estimates and childcare demand parameters for the Australian population in 2002, this paper illustrates how an extended childcare subsidy proposed by the Taskforce on Care Costs in October 2006 can be evaluated using a microsimulation model. First, the cost to the government is predicted assuming unchanged labour supply behaviour. Then the labour supply effects of the TOCC proposal are predicted for single parents and couple families separately, including a revised prediction of the cost to the government which takes the labour supply responses into account.

Keywords: Personal Income and Other Non-business Taxes and Subsidies; includes inheritance and gift taxes; Fiscal Policies and Behavior of Economic Agents; Household Fertility; Family Planning; Child Care; Children; Youth; Time Allocation and Labor Supply (search for similar items in EconPapers)
JEL-codes: H24 H31 J13 J22 (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (4)

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Working Paper: The Effect of an Alternative Childcare Subsidy on Labour Supply: A Policy Simulation (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:ozl:journl:v:10:y:2007:i:1:p:39-57

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