Guyonne Kalb () (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne) Wang-Sheng Lee () (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)
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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 cost/benefit analysis which takes the labour supply responses into account.
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Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number
wp2007n14.
Length: 21 pages Date of creation: Apr 2007 Date of revision: Handle: RePEc:iae:iaewps:wp2007n14
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