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

Author

Listed:
  • 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.

Suggested Citation

  • Guyonne Kalb & Wang-Sheng Lee, 2007. "The effect of an alternative childcare subsidy on labour supply: a policy simulation," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 10(1), pages 39-57, March.
  • Handle: RePEc:ozl:journl:v:10:y:2007:i:1:p:39-57
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    Cited by:

    1. 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.
    2. 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.
    3. Guyonne Kalb, 2009. "Children, Labour Supply and Child Care: Challenges for Empirical Analysis," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 42(3), pages 276-299.

    More about this item

    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;

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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