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

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  • Guyonne Kalb

    ()
    (The University of Melbourne)

  • Wang-Sheng Lee

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.

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Bibliographic Info

Article provided by Bankwest Curtin Economics Centre (BCEC), Curtin Business School in its journal Australian Journal of Labour Economics.

Volume (Year): 10 (2007)
Issue (Month): 1 (March)
Pages: 39-57

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Handle: RePEc:ozl:journl:v:10:y:2007:i:1:p:39-57

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Web page: http://business.curtin.edu.au/research/publications/journals/ajle/
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Keywords: Personal Income and Other Nonbusiness 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;

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Cited by:
  1. Guyonne Kalb & Thor Thoresen, 2010. "A comparison of family policy designs of Australia and Norway using microsimulation models," Review of Economics of the Household, Springer, vol. 8(2), pages 255-287, June.
  2. Guyonne Kalb, 2007. "Children, Labour Supply and Childcare: Challenges for Empirical Analysis," Melbourne Institute Working Paper Series wp2007n15, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  3. Yin King Fok & Sung-Hee Jeon & Roger Wilkins, 2009. "Does Part-Time Employment Help or Hinder Lone Mothers Movements into Full-Time Employment?," Melbourne Institute Working Paper Series wp2009n25, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.

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