Simulating the Behavioural Effects of Welfare Reforms among Sole Parents in Australia

Alan Duncan and Mark Harris

Melbourne Institute Working Paper Series from Melbourne Institute of Applied Economic and Social Research, The University of Melbourne

Abstract: This paper derives and estimates an econometric model of labour supply among sole parents in Australia, using modelling techniques which treat the labour supply decision as a utility maximising choice between a given number of discrete states. In estimation, we control for random preference heterogeneity as well as Þxed and search costs. Using our econometric model, we look at the e.ects of actual and hypothetical welfare policy reforms on the employment choices of sole parents in Australia. The microsimulation results presented in this paper use the Melbourne Institute Tax and Transfer Simulator (MITTS), developed at Melbourne Institute of Applied Economic and Social Research.

Pages: 40 pages
Date: 2001-06
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Citations: View citations in EconPapers (26)

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Journal Article: Simulating the Behavioural Effects of Welfare Reforms Among Sole Parents in Australia (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:iae:iaewps:wp2001n06

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